INPEX signs Heads of Agreement on LNG sales with two Japanese utility companies for the Prelude FLNG project
INPEX C ORPORATION (INPEX) has signed Heads of Agreement s (HOAs ) today with Japan’s Tokyo Electric Power Company, Inc . (TEPCO ) and Japan’s Shizuoka Gas Company , Ltd. (Shizuoka Gas) for the sale s and purchase of Liquefied Natural Gas (LNG) from the Prelude FLNG project in Australia, the company said in its press release.
INPEX is the parent company of INPEX Oil & Gas A u stralia Pty Ltd. (IOGA), a holder of an equity interest of 17.5 % in the project . The project is being developed by a subsidiary of Royal Dutch Shell plc (Shell) utilizing Floating LNG (FLNG) technology. This is the first time for INPEX to sell LNG produced from an FLNG project and represents an important milestone.
The project is located in Block WA - 44 - L, approximately 475km north - northeast of Broome, off the coast of Western Australia, consisting of the Prelude and the Concerto gas fields . These gas fields will be developed utilizing FLNG technology, and will produce at least 3.6 MTPA of LNG, 0.4 MTPA of LPG (liquefied petroleum gas) and approximately 36 ,000 barrels per day of condensate at peak. INPEX acquired a 17.5% participating interest in the Project in June 2012.