Japanese Inpex to Set Up LNG Trading Unit

Japanese Inpex will establish an LNG trading unit with an aim to improve the flexibility and efficiency of the LNG supply and demand across the company’s gas supply chain, as well as LNG transportation.

“This move reflects Inpex’s initiative to enhance its management structure in the pursuit of the company’s three growth targets outlined in the medium- to long-term vision formulated in 2012, which are the enhancement of its E&P activities, the strengthening of its gas supply chain and the reinforcement of its renewable energy initiatives,” it said June 21. The LNG trading unit will become operational from July 1.

Inpex’s business operations including LNG trading and transportation from company’s projects outside of Japan have until now been carried out in part by the Gas Business Unit of the Global Energy Marketing Division. The LNG trading unit will be a subdivision of the Global Energy Marketing Division.

Inpex has 17.5% of the Shell operated 3.6mn mt/yr Prelude FLNG project in the Browse Basin off northwest Australia which is due to start up commercially by 2018. It is also developing the Ichthys LNG project off Australia's Northern Territory, in partnership with French Total, Taiwanese CPC Corporation, and Japanese utilities Tokyo Gas, Osaka Gas, Kansai Electric Power, Chubu Electric Power and Toho Gas. Inpex also will offtake 900,000mn mt/yr, which will be brought to Japan for further distribution. The project has seen cost blow-out and start up dates has been extended multiple times and was supposed to have started up at the end of 2016 and was then postponed to July-September 2017.

Shardul Sharma