Ichthys Power Plant Contract Terminated

CIMIC Group on January 25 said that UGL-CH2M joint venture has terminated its contract with JKC Australia LNG for the design, construction and commissioning of the Ichthys combined cycle power plant project.

UGL, part of CIMIC Group, is the primary contractor to build the power station for the Ichthys LNG project, while JKC is principal Inpex contractor. NGW wrote to CIMIC Group for further comment but the mail remained unanswered.

Ichthys LNG project onshore facilities (Credit: Inpex)

The project is already facing a cost blow-out and delays and this development could be a further setback. The project is a joint venture between Inpex (the operator), Total, CPC Corporation Taiwan and the Australian subsidiaries of Tokyo Gas, Osaka Gas, Kansai Electric Power, Jera and Toho Gas. The project is expected to produce 8.9mn mt of LNG and 1.6mn mt of LPG annually, along with more than 100,000 barrels of condensate/day at peak.

Japanese Inpex earlier this month announced the completion of installation of subsea infrastructure and equipment for the Ichthys LNG project. 

Shardul Sharma