Japanese oil company INPEX, has shipped out the first load of liquefied natural gas (LNG) from the Ichthys LNG onshore processing facility in Darwin.
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The first export shipment occurred late on Monday evening in the purpose-built carrier Pacific Breeze and marks a significant milestone in the project’s history.
It is the first of at least 40 years’ worth of exports, which will see to supplying more than 10 per cent of Japan’s total annual LNG imports.
The Northern Territory Government, yesterday, congratulated INPEX and the Ichthys LNG joint venture participants on their first export.
“The Ichthys LNG Project was secured by a Labor Government in 2012 and remains one of the biggest projects ever undertaken in the Southern Hemisphere,” Chief Minister Michael Gunner said.
“It clearly demonstrates the capacity of Territorians to deliver world class gas facilities, and the importance of this sector to our economy.”
The project represents Japan’s largest ever investment outside of their country, and has made INPEX the Territory’s single largest investor.
“During its peak the project created around 11,000 jobs with more than 1000 local businesses engaged in the project in construction,” Mr Gunner said.
“We have released a Five Point NT Gas Strategy to continue creating jobs through exploration, production, supply, export, manufacturing, research and innovation, and have re-established the NT Gas Task Force to implement the strategy.
“This first export shipment marks a very important milestone for the Ichthys LNG project, and I congratulate INPEX and its partners.”
The Five Point NT Gas Strategy was announced as part of NT Resources Week in September.
The strategy is expected to drive the government’s vision for the Territory as a world class hub for gas production, manufacturing and services by 2030.
At the time, a NT Government spokesman said the establishment of a gas manufacturing industry is fundamental to the strategy to create jobs and drive population growth.
The strategy includes five targets:
1. Get more LNG in Darwin and expand Darwin’s LNG Export Hub.
2. Grow the gas supply and service industry
3. Establish a gas manufacturing industry
4. Grow research, innovation and training capacity and;
5. Contribute to national energy security on the East Coast.
The Territory has land available for future expansions which could more than triple LNG production.
“The Territory has estimated onshore gas resources of 500 trillion cubic feet (approximately 400 years supply for Australia) and 30tcf in offshore resources,” a NT spokesman said.
“ACIL Allen (an Australian owned economics and policy consultancy) has forecast that at peak production, the economic output of the project will be $4.5 billion per annum.
“The INPEX-operated Ichthys LNG Project has created more than 11,000 local job opportunities during the construction phase, with more than 1000 local businesses engaged by the project during construction.
“More than 60 Aboriginal and Torres Strait Islander businesses have been awarded contracts through the project amounting to more than $134 million to date,” he said.
It is expected around 350 people will be working on site each day during the ongoing operating phase.
Investment in facilities at Bladin Point will continue, with INPEX expected to outlay hundreds of millions each year to support operations.
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