• 3 minutes Nucelar Deal Is Dead? Iran Distances Itself Further From ND, Alarming Russia And France
  • 5 minutes Don Jr. Tweets name Ukraine Whistleblower, Eric Ciaramella. Worked for CIA during Obama Administration, Hold over to Trump National Security Counsel under Gen McCallister, more . . . .
  • 9 minutes Shale pioneer Chesepeak will file bankruptcy soon. FINALLY ! The consolidation begins
  • 12 minutes China's Blueprint For Global Power
  • 3 hours Science: Only correct if it fits the popular narrative
  • 3 hours Crazy Stories From Round The World
  • 11 hours What are the odds of 4 U.S. politicians all having children working for Ukraine Gas Companies?
  • 16 hours EU has already lost the Trump vs. EU Trade War
  • 9 hours China's Renewables Boom Hits the Wall
  • 1 day ''Err ... but Trump ...?'' *sniff
  • 30 mins Do The World's Energy Policies Make Sense?
  • 10 hours Forget out-of-date 'dirty oil' smear, Alberta moving to be world's cleanest oil industry
  • 1 day Pioneer's Sheffield in Doghouse. Oil upset his bragging about Shale hurt prices. Now on campaign to lower expectations, prop up price.
  • 3 hours Impeachment Nonsense
  • 1 day Tesla Launches Faster Third Generation Supercharger
  • 15 hours Water, Trump, and Israel’s National Security
  • 2 days Passerby doused with flammable liquid and set on fire by peaceful protesters

Breaking News:

Russia Plans To Boost Crude Oil Exports

Australia Takes On Qatar For Top LNG Producer Status

LNG

Australia this week moved a step closer to becoming a real problem for Qatar on the LNG market, after the second floating production, storage, and offloading vessel for the Ichthys gas field reached its destination.

The Ichthys Venturer joins the Ichthys Explorer at the field operated by Japan’s Inpex, with the first LNG shipment from the field scheduled for next spring.

The Venturer has a capacity of 1.12 million barrels of gas condensate and will process, stabilize, and store condensate it will receive from the other FPSO, and then load it on tankers.

The Ichthys largest overseas investment by Japan, and Inpex, Reuters notes, and the company’s first foray into LNG.

The US$34-billion project will tap reserves estimated at over 12 trillion cu ft of natural gas, helping Australia take on the world leader in LNG exports, Qatar. It has run into difficulties, however, with costs rising to US$37 billion and the launch of production getting delayed by a year.

Now analysts are watching the Ichthys development closely to see if Inpex could “pull it off without any more budget blow-outs and delays,” and whether it could compete with Shell in Australian waters. Earlier this year, the Anglo-Dutch supermajor delivered the Prelude FPSO to its same-name field, in waters adjacent to the Ichthys. The US$12.6-billion development has also been running behind schedule and now first production from the world’s largest FLNG facility is set for between April and July 2018.

Who beats who to first production is important because the Prelude and the Ichthys share reserves, analysts note, so whoever starts earlier, will be effectively undermining the production of the loser.

Related: China Prepares For A Natural Gas Import Boom

Inpex, however, is better placed to benefit either way: it has a minority stake in the Prelude project besides its 62.2 percent interest in Ichthys.

Australia is eyeing the top spot among LNG exporters by 2020 thanks to an investment boom estimated at US$200 billion. However, a gas shortage on the domestic market earlier this year prompted the federal government to install export controls aimed at first ensuring local energy security and then advancing the export growth strategy.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment
  • Naomi on August 15 2017 said:
    Natural gas is replacing OPEC.

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play