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Claim filed regarding construction of Ichthys LNG project

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LNG Industry,

INPEX Corp. (INPEX) is continuing stable production operations at the Ichthys LNG Project in Australia through its affiliate, Ichthys LNG Pty Ltd (ILNG), alongside its project partners.

The construction of the onshore natural gas liquefaction plant of the Project was undertaken by JKC Australia LNG Pty Ltd (JKC), a consortium comprised of subsidiaries of the former JGC Corporation (JGC Holdings Corporation or the current JGC Corporation), KBR and Chiyoda Corporation.

During the construction phase, ILNG and JKC entered into a deed (the ‘Deed’), pursuant to which ILNG provided interim funding for an amount of AUS$757 727 884.46 (the ‘Funding’) to enable JKC to settle certain claims with its subcontractors. The Deed provided that JKC was obliged to repay the entire Funding on 31 December 2020.

ILNG and JKC are currently involved in arbitration proceedings over amounts including construction costs. On 1 December 2020, the arbitral tribunal issued a partial award confirming that JKC’s obligation to repay the Funding to ILNG as of 31 December 2020 is valid and enforceable.

Notwithstanding the partial award, JKC has still not repaid the Funding. Therefore, on 16 April 2021, ILNG submitted a claim against JGC, which holds the largest share in JKC, in the Yokohama District Court seeking repayment of the Funding, pursuant to the Parent Company Guarantee provided by JGC.

INPEX will promptly make an announcement in the event further disclosure is required.

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