BP has stood down contractors working on its biofuel plant just weeks before discovering if its adjacent green hydrogen project will win $1 billion of government backing.
The cost of the Ichthys LNG project may increase to $US40 billion, according to French oil major Total.
Reuters reported that Total chief executive Patrick Pouyanne, whose company owns 30 per cent of Ichthys, said on Thursday that the cost, now estimated at $US37 billion, could reach $US40 billion.
Ichthys operator Inpex was more optimistic about costs. Reuters reported Inpex executive Masahiro Murayama had described any further expenses as “minimal” on Thursday.
An Inpex spokeswoman in Perth said the project was proceeding safely towards start-up. “There is no change to the plan to begin production from the wellhead within the fiscal year ending March 2018, after which, products will be shipped out in sequence,” she said.
Three months ago Inpex chief executive Toshiaki Kitamura said condensate, LNG and LPG would all be produced by March. It is understood project members in Perth were told before Christmas to focus on a mid-year start-up.
For hydrocarbons to flow from a wellhead on the seabed of the Browse Basin to the plant in Darwin, two giant offshore facilities need to start up successfully, then an 890km pipeline must be filled. The intricate process of starting up the 8.9 million tonne-a-year LNG plant can then begin. It is believed Inpex is considering using temporary power generation because its power station is not ready.
I worked in oil & gas in commercial and engineering roles for 20 years. Since 2016 I have written for The West Australian, The Saturday Paper, RenewEconomy, Michael West, Boiling Cold and WAtoday.
Australian LNG producers are under pressure on emissions and decommissioning, and Santos wants to tackle both problems in one swoop at Bayu Undan, but it needs everyone to play along.
