Inpex, Japan’s largest oil and gas explorer, has reported that its Ichthys liquefied natural gas (LNG) plant in Australia has nearly reached full production capacity as of the end of April. The recovery follows a dip in the plant’s run rate to 80-90% in mid-April due to a heat exchanger issue, according to senior vice president Daisuke Yamada.
Yamada addressed the media on Tuesday, revealing that the plant would undergo scheduled maintenance for about six weeks, from mid-August to October, during which the heat exchanger would be replaced.
Despite the temporary slowdown, Yamada indicated that the production at Ichthys LNG this year would mirror last year’s output, though he refrained from specifying the number of cargoes the plant is expected to export.
The plant, a joint venture between Inpex, TotalEnergies, and several Australian subsidiaries, faced operational disruptions last year, including train shutdowns in July and August for heat exchanger inspections.
Ichthys LNG, with two processing trains, has the capacity to produce approximately nine million tonnes of LNG per year.
Inpex also revised its annual net profit forecast, cutting it by 9% from the February estimate to 300 billion yen ($2.03 billion), citing lower oil prices and a stronger yen. However, the company reported a 4% increase in net profit for the January-March quarter.
When asked about Inpex’s potential involvement in the $44 billion Alaska LNG project, Yamada expressed skepticism, saying, “I don’t believe it’s a project that a private company can pursue with the expectation of making it profitable.” He added that Inpex is not currently considering any specific involvement in the project, which aims to deliver gas from Alaska’s North Slope via an 800-mile pipeline for both domestic use and LNG exports to Asia.
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