ABC News
Japanese gas company Inpex and its French partner Total have confirmed they will proceed with their planned $33 billion Ichthys gas project in Darwin and off the coast of Western Australia.
Japanese gas company Inpex and its French partner Total have confirmed they will proceed with their planned $33 billion Ichthys gas project in Darwin and off the coast of Western Australia.
Inpex chairman Naoki Kuroda made the announcement in Darwin today.
The company says about 8.4 million tonnes of liquefied natural gas (LNG) will be produced each year once the project is up and running.
Preliminary works on the Blaydin Point gas processing plant in Darwin Harbour and a worker's camp in the city's rural area are expected to begin within weeks.
The camp will be able to house up to 2,800 workers.
The Northern Territory Government estimates several thousand workers will be needed to build the Darwin plant, which will process natural gas piped about 800 kilometres from the Browse Basin off WA's Kimberley coast.
Inpex and Total have already signed long-term sale and purchase agreements for the gas with Japanese and Taiwanese utility companies.
These cover the total projected LNG production from Ichthys for 15 years from 2017.
The first gas from the plant is expected to be produced in 2016.
Mr Kuroda says it will be one of the world's largest LNG facilities and that gas and condensate reserves in the Browse Basin would last around 40 years.
"Ichthys production volumes represent more than 10 per cent of Japan's (gas) imports at current levels," Mr Kuroda said.
In addition, the liquids-rich gas stream will also generate about 100,000 barrels of condensate a day at the peak of production.
Mr Kuroda says about 3,000 workers will be needed for the onshore construction phase, with a further 1,000 offshore.
"Once the project is in operation, we will require approximately 700 permanent positions," Mr Kuroda said.
Historic day
Chief Minister Paul Henderson says the signing of the deal marks an historic day for the Territory.
"The Territory has secured its economic future and is on the way to becoming the oil and gas capital of Australia," he said.
The Federal Government says the Inpex project in Darwin will be the "making" of the Territory for this century.
Resources Minister Martin Ferguson says the nation's combined LNG output is set to soar.
"Energy demand is growing, particularly from the powering economies of Japan and Taiwan, China and India, and this demand will continue into the foreseeable future," he said.
"It potentially means we will quadruple LNG production out of Australia within a decade."
Mr Ferguson says the Ichthys deal marks the beginning of a new era for northern Australia.
"The Ichthys project... is the second-biggest investment in a single project in the history of Australia."
Meanwhile during today's formal signing ceremony, a Japanese government minister apologised for the bombing of Darwin.
Senior vice-minister for trade Tadahiro Matsushita acknowledged the history between Japan and Darwin.
"During a certain period in the not-too-distant past, Japan caused tremendous damage and suffering to the people of many countries," he said.
"Taking this opportunity, I would like to express my feelings of deep remorse and state my heartfelt apology."
First posted January 13, 2012 07:48:05
No comments:
Post a Comment