LNG tanker floats off Australian waters as Ichthys ramps up output
29/04/2019 22:00
(Repeats with no changes to text)
* Cargo aboard tanker already sold to N.Asian buyer - source
* Inpex ramps up production - sources
* Adds to supply glut in the market
By Jessica Jaganathan
SINGAPORE, April 29 (Reuters) - A tanker carrying liquefied
natural gas (LNG) has been floating off Australian waters for
nearly two weeks as production at Ichthys project ramps up,
industry sources told Reuters.
The tanker 'Symphonic Breeze' has been moored at Darwin
anchorage since April 17 after loading a cargo from the recently
launched Ichthys LNG facility, shipping data from Refinitiv
Eikon showed.
The LNG cargo has already been sold to a North Asian buyer,
who chose to lift it at a later date due to high inventory in
its tanks, an industry source familiar with the matter said.
The "floating cargo" situation has been partly created due
to ample global supply with several new projects expected to
launch LNG exports this year, including Royal Dutch Shell's
Prelude floating terminal that started production late last year
in Australia, and as demand remained largely stable, industry
sources said.
The delivery period for the cargo was quite wide, the source
added.
Production from Ichthys in western Australia has also been
ramping up and adding to the glut, the sources added.
"Ichthys production is very strong, which is causing a bit
of headache for the market given the current situation," the
first source added.
A spokesman from Japanese firm Inpex 1605.T , the operator
of the project, told Reuters that Ichthys is ramping up output,
but did not specify the production level.
LNG exports from Ichthys are expected to reach a record high
of up to 680,000 tonnes in April, the equivalent of about 91
percent of the nameplate capacity, said Madeleine Overgaard, an
LNG market analyst with data intelligence firm Kpler.
The $40 billion Ichthys project shipped its first condensate
and LNG cargoes in October last year after several delays and
cost overruns. urn:newsml:reuters.com:*:nL4N1U521G
At full operation, Ichthys is expected to produce 8.9
million tonnes of LNG a year, along with 1.7 million tonnes of
LPG and about 100,000 barrels per day of condensate, an
ultra-light form of crude oil.
Inpex has said it will take about two to three years to
reach full production.
The Ichthys LNG project is a joint venture between Inpex,
oil major Total TOTF.PA , Taiwan's CPC Corp CHIP.UL and the
Australian subsidiaries of Japan's Tokyo Gas 9531.T , Osaka Gas
9532.T , Kansai Electric Power 9503.T , JERA and Toho Gas
9533.T .
(Reporting by Jessica Jaganathan, additional reporting by Aaron
Sheldrick in TOKYO, Editing by Sherry Jacob-Phillips)
((Jessica.Jaganathan@thomsonreuters.com; +65 6870 3822; Reuters
Messaging: jessica.jaganathan.thomsonreuters.com@reuters.net;
Twitter: https://twitter.com/j3ssi3))