INPEX CORPORATION is pleased to announce that it has signed Heads of Agreements (HOAs) with Japan’s Tokyo Electric Power Company, Inc. (TEPCO) and Japan’s Shizuoka Gas Company, Ltd. (Shizuoka Gas) for the sales and purchase of Liquefied Natural Gas (LNG) from the Prelude FLNG project (The Project) in Australia.

INPEX is the parent company of INPEX Oil & Gas Australia Pty Ltd. (IOGA), a holder of an equity interest of 17.5% in The Project. The Project is being developed by a subsidiary of Royal Dutch Shell plc (Shell) utilizing Floating LNG (FLNG) technology.

This is the first time for INPEX to sell LNG produced from an FLNG project and represents an important milestone.


The Project is located in Block WA-44-L, approximately 475km north-northeast of Broome, off the coast of Western Australia, consisting of the Prelude and the Concerto gas fields. These gas fields will be developed utilizing FLNG technology, and will produce at least 3.6 MTPA of LNG, 0.4 MTPA of LPG (liquefied petroleum gas) and approximately 36,000 barrels per day of condensate at peak.

INPEX acquired a 17.5% participating interest in the Project in June 2012. Shell holds a 67.5% majority participating interest as the Operator while Korea Gas Corporation holds a 10% participating interest and Taiwan’s CPC Corporation holds a 5% participating interest.

Shell made the final investment decision on The Project in May 2011. The hull of the FLNG facility was floated out from a dry dock in December 2013 representing an important technology milestone. The development of the Prelude gas field is proceeding smoothly, and is targeting a production start-up in 2017 around 10 years after the Prelude gas field was discovered in early 2007.

Under the HOAs, INPEX has reached agreement for IOGA’s equity portion of The Project’s LNG output (approximately 0.63MTPA), with TEPCO to purchase approximately 0.56 MTPA of LNG and Shizuoka Gas to purchase approximately 0.07 MTPA of LNG for 8 years commencing in 2017, both using “Delivered Ex Ship” trade terms. The sales volume of LNG to each buyer shown above is the expected plateau volume. As all of the IOGA’s equity portion of LNG from the Project will be delivered into Japan for these two Japanese utility companies, it will significantly contribute to Japan’s stable energy supply.

INPEX will continue to negotiate with TEPCO and Shizuoka Gas with regard to the finalization and execution of the LNG Sales and Purchase Agreements.

INPEX is engaged in many significant natural gas projects worldwide including the world-scale Ichthys LNG Project in Australia and the Abadi LNG Project in Indonesia as Operator. These projects will meet a growing demand for natural gas which is an environmentally friendly fuel and will contribute to securing a stable supply of energy .

About INPEX

INPEX CORPORATION is a worldwide oil and gas exploration and production company currently involved in more than 70 projects across 28 countries. INPEX is ranked in the top 100 global energy companies and is listed on the Tokyo Stock Exchange. Part of the Australian business community since 1986, we are active in a number of projects in Australia and the Timor Sea, including the large-scale Ichthys LNG Project, Prelude FLNG project, Van Gogh, Ravensworth and Kitan oil projects, as well as the Bayu-Undan condensate development and associated Darwin LNG.

About Royal Dutch Shell plc

Royal Dutch Shell plc is incorporated in England and Wales, has its headquarters in The Hague and is listed on the London, Amsterdam, and New York stock exchanges. Shell companies have operations in more than 70 countries and territories with businesses including oil and gas exploration and production; production and marketing of liquefied natural gas and gas to liquids; manufacturing, marketing and shipping of oil products and chemicals and renewable energy projects.

See the site of Prelude FLNG