Rick Wilkinson
OGJ Correspondent
MELBOURNE, Feb. 28 -- Japanese company Inpex Australia is considering Darwin as an optional site for its proposed LNG plant, which will use gas feedstock from its Ichthys field in the Browse basin off Western Australia (OGJ Online, Feb. 2, 2007).
Inpex also is considering a larger plant for a Darwin operation, although it has not specified the precise size.
The company and partner Total SA have a preferred site on the Maret Islands off the Kimberley coast of Western Australia that calls for a two-train LNG plant for a total 7.6 million tonne/year output. However, that site is facing increasing opposition from green groups and a drawn-out approvals process from Western Australian authorities.
In addition, Australia's federal and state (Western Australia) governments are considering the sanction of just one common-user LNG hub on the Kimberley coast for all Browse basin gas fields.
Inpex said its original schedule to produce its first LNG shipments by 2012 will be delayed as the company reviews its project budget and development program.
The company recently signed a project facilitation agreement with Northern Territory under which the joint venture will take a considered look at the Middle Arm Peninsula near Darwin as a potential LNG site.
The NT government is keen to have the project and says the agreement ensures that a whole-of-government approach is taken to the development of Ichthys. This includes facilitating necessary environmental and planning approvals, provision of land at Middle Arm, and port access.
The company is now undertaking a range of technical and engineering studies to fully assess the Darwin option to compare it with the Maret proposal.
One difficulty is the length of pipeline required for a Northern Territory landfall. An Ichthys-to-Darwin pipeline would be 850 km compared with an Ichthys-to-Maret line of 190 km.
Inpex has a 76% interest, and Total holds the remaining 24%.