Reuters are reporting that Australia's US$34 billion Ichthys LNG export project has been dealt a blow as engineering firm CIMIC involved in building the facility's power station announced that it is pulling out.
The power station is planned to supply the Ichthys LNG export facility with electricity.
A spokesman for Japan's Inpex, the majority owner of Ichthys LNG, announced that the power station was 89% complete.
Inpex do not see this cancellation as ‘critical’ to Ichthys and have stated that it will not have ‘a fatal influence’ on its launch. The cancellation will however almost certainly delay the project's production ramp-up, which was scheduled for July to September this year.
Australia's US$200 billion LNG production ramp-up is one of the biggest increases in supply the industry has ever seen, and it will lift Australia over Qatar as the world's biggest exporter of the fuel.
Even so, most of Australia's LNG projects currently under construction, including Chevron's huge Gorgon facility and Royal Dutch Shell's floating Prelude production vessel, are having trouble keeping within budget and sticking to schedules, and more delays are expected.
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