The partners in the Ichthys liquefied natural gas (LNG) project have signed further sales agreements, potentially worth billions of dollars to the Australian economy.
The Minister for Resources and Energy, Martin Ferguson AM MP, welcomed the signing of long-term supply contracts with Taiwan’s CPC Corporation as well as with Chubu Electric Power and Toho Gas of Japan. This follows the December 2011 sales agreements with five Japanese utilities for LNG from the Ichthys project.
Speaking at the signing in Melbourne today, Minister Ferguson congratulated the partners on the first binding long-term sales contract for the supply of Australian natural gas to Taiwan.
“Opening up a new market is a major step for the Australian LNG industry. Today we add Taiwan to the list of countries that use clean, safe, reliable Australian LNG to help power their economies,” Minister Ferguson said.
“Taiwan is one of the world’s largest importers of LNG. This sales agreement will boost overall LNG imports to Taiwan by over 15 per cent.”
Minister Ferguson said the Ichthys Project, if sanctioned, will be the single biggest investment in an Australian resources project by a Japanese or French company, through INPEX and Total.
“Japan is Australia’s oldest, largest and most valuable LNG trading partner. Around 70 per cent of current Australian LNG exports go to Japanese customers,” Minister Ferguson said.
“Japan has been receiving Australian LNG since 1989 when the first cargoes left the North West Shelf. Japan was the foundation customer for this groundbreaking project and the second LNG project for Australia, Darwin LNG.
“Japan was there again as a foundation customer for the Pluto Project, Gorgon LNG and the Wheatstone Project. Japanese customers will also take some of the first LNG exports based on coal seam gas from the Queensland Curtis LNG Project and Australia-Pacific LNG.
“Investments by companies such as INPEX and Total will expand Australia’s LNG-export capacity to over 80 million tonnes per annum and potentially see Australia become the world’s largest exporter of LNG.
“I look forward to an announcement of a final investment decision from the Ichthys Joint Venture to move this project to the development stage.”