Japan assessing impact on LNG supplies from Australia's Ichthys LNG strike

Osaka Gas Co

Today 05:48

By Yuka Obayashi

    TOKYO, June 16 (Reuters) - Japan is assessing the impact on liquefied natural gas supplies from a strike at Inpex's 1605.T Ichthys project in Australia after a court rejected a bid to halt the action, Industry Minister Ryosei Akazawa said on Tuesday. 
Australia's Offshore Alliance plans to extend until July 6 action that could disrupt LNG shipments, it said on Monday, after a tribunal rejected plant operator Inpex's bid to halt the strike at Ichthys LNG.
The Japanese government is in close contact with Inpex, Japan's biggest energy explorer and developer, and is monitoring labour talks, fuel procurement and contingency steps by power and gas utilities, Akazawa told a news conference.
Japan will continue working with Inpex and utilities while closely watching developments in Australia and LNG markets to ensure stable energy supplies, he said.
The Ichthys project has a production capacity of about 9.3 million metric tons of LNG per year and is 67.82% owned by Inpex. Other stakeholders are France's TotalEnergies TTEF.PA, Taiwan's CPC, Osaka Gas 9532.T, Kansai Electric Power 9503.T, JERA and Toho Gas 9533.T. 
Long-term LNG buyers from the project are mainly Japanese utilities, including equity partners as well as Kyushu Electric Power 9508.T and Tokyo Gas 9531.T, according to the Japan Organization for Metals and Energy Security (JOGMEC).
Japanese companies collectively purchase about 5.7 million tons per year from the project, including Inpex's offtake volume.
In May, an Inpex executive said the Ichthys project is expected to ship an average of about 10 LNG cargoes per month in 2026.
An Inpex spokesperson on Tuesday declined to comment on how the strike has affected production or shipment at the Ichthys project.

 (Reporting by Yuka Obayashi; Editing by Muralikumar Anantharaman)
 ((Yuka.Obayashi@thomsonreuters.com; +813-4520-1265;))