The Ichthys LNG project in Australia is facing an unplanned outage of Train 2 on August 20, 2024.
This failure occurred after a recent recommissioning, resulting in an immediate reduction in production to 50% of nominal capacity.
The plant continues to operate solely with Train 1, which directly affects the export volume of liquefied natural gas (LNG), particularly destined for the Asian market, and more specifically Japan, a major consumer of LNG.
INPEX, the project’s majority operator, is carrying out intensive repair and inspection work to resolve the technical problems.
A full resumption of operations is scheduled for October, which will restore the plant’s full capacity and secure the LNG supply chains.
Impact on LNG markets
The shutdown of Ichthys LNG Train 2 has had a significant impact on LNG markets, particularly in the Asia-Pacific region.
On August 26, spot prices rose slightly by 0.4%, indicating the market’s sensitivity to the shutdown.
This increase was fuelled by the reduction in LNG exports from Ichthys and the simultaneous shutdown of a coal-fired unit in Japan.
LNG shipments, which had averaged 11 cargoes per month in the first half of 2024, are reduced to 10 cargoes per month for the remainder of the year.
INPEX anticipates a limited impact on total shipment volumes for 2024, despite this temporary interruption.
The aim is to stabilize the market in the short term and restore customer confidence in the reliability of supplies.
Corrective action and operational reliability
Faced with the challenges posed by the breakdown of Train 2, INPEX is focusing on corrective actions to improve the plant’s reliability and performance.
Initiatives are being taken to optimize the cooling systems used in the liquefaction process and to manage the vibrations that contributed to the shutdown.
These efforts are aimed at reducing the risk of future shutdowns and ensuring stable operation of the plant over the long term.
The Ichthys LNG project, with a nominal production capacity of 8.9 million tonnes per year, remains a strategic asset for LNG supply in the Asia-Pacific region.
The facility, which also produces liquefied petroleum gas (LPG) and condensate, continues to play a vital role in the region’s energy supply chain.
By stepping up maintenance measures and adjusting operations in response to technical challenges, INPEX is striving to minimize the impact on its exports and guarantee the stability of its operations.
The facility’s ability to meet market needs after these disruptions will be a key indicator of its long-term resilience and efficiency.
