Australia: Sumitomo to Supply Ichthys LNG Project with Line Pipes

Sumitomo Metal Industries, Ltd. (Sumitomo Metals) and Sumitomo Corporation have signed a contract on 10th February, 2012 with Ichthys joint venture (INPEX 76% the Operator, Total 24%) for the supply of high strength large diameter welded (UOE) line pipes for the Ichthys LNG Project in Australia and the production of these line pipes is about to start.

For this project, approximately 889km of offshore pipeline will be installed to transport natural gas from the offshore gas-condensate field to the onshore LNG plant in Darwin. Sumitomo Metals and Sumitomo Corporation will supply 20% of the entire 180km line pipe, weighing approximately 138,200 metric tons.

The Ichthys LNG Project is to produce gas from the Ichthys Field, in the Browse Basin approximately 200 kilometres offshore of Western Australia, will undergo preliminary processing offshore to remove water and extract condensate. The gas will then be exported to onshore processing facilities in Darwin via an 88km subsea pipeline. The Ichthys LNG Project is expected to produce 8.4 million tonnes of LNG and 1.6 million tonnes of LPG per annum, along with approximately 100,000 barrels of condensate per day at peak.

Approximately 70% of LNG from the Ichthys Project will be supplied to Japan through long term agreements with Japanese Gas and Power companies. Through the Ichthys LNG Project, Japan will be able to secure a stable energy source. The Ichthys LNG Project thus supports Japan’s national energy policy as one of the most important projects to provide for Japan’s future energy needs.

Sumitomo Metals and Sumitomo Corporation are the world’s leading suppliers of large-diameter welded line pipes that will supply high quality line pipes to this project as a contribution to Japan’s future energy prospects.

Subsea World News Staff , May 30, 2012;  Image: INPEX

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