Inpex Chairman Naoki Kuroda made the announcement in Darwin, the site of the onshore gas processing facilities, with Northern Territory Chief Minister Paul Henderson and Federal Minister for Resources, Energy and Tourism Martin Ferguson in attendence.

Mr Kuroda said “The Ichthys final investment decision (FID) announced today by Inpex and Total signals the start of construction of one of the world’s largest LNG facilities based on an estimated 40 years of gas and condensate reserves from the Browse Basin located offshore WA.

“Ichthys production volumes represent more than 10 per cent of Japan’s LNG imports at current levels. [The project] will provide a long-term stable supply of cleaner energy to Japan, and help Japan diversify its energy sources.”

The Ichthys LNG Project involves onshore processing facilities in Darwin and an 889 km pipeline. The FID for Ichthys is based on two LNG trains at Blaydin Point, however the NT government has set aside enough land for the possible future expansion of the project of up to four additional trains.

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The project is expected to produce 8.4 MMt/a of LNG and 1.6 MMt/a of LPG, along with approximately 100,000 bbl/d of condensate at peak.

Mr Kuroda said mobilisation for construction of the project would start immediately, with preliminary works at the Blaydin Point site due to commence within weeks. The engineering, procurement and construction of the onshore LNG plant and associated infrastructure has been awarded to the JKC joint venture, which is comprised of JGC Corporation, KBR and Chiyoda Corporation.

Key environmental and production approvals have been received from the relevant authorities in Australia.