Investment plan

Japan’s Inpex unveils $38 billion investment plan in growth areas

Japanese oil and gas explorer Inpex has unveiled plans to invest up to $38 billion (4.4 billion yen) over the next nine years in potential growth areas.

The company intends to allocate $8.66 billion (JPY1tn) of the total investment plan to decarbonization projects, including hydrogen and ammonia.

Inpex CEO Takayuki Ueda was quoted by Reuters as saying at a press briefing: “As a pioneer in energy transformation, we aim to provide a stable supply of diverse and clean energy sources. , including oil and natural gas, hydrogen and renewable energy.

As part of the new long-term business plan, the company plans to invest in LNG as a key growth engine while focusing on reducing CO₂ emissions.

By making selective investments in oil projects, the company hopes to ensure production and rapid cost recovery, despite the uncertainty of the long-term demand outlook, Ueda said.

Inpex has set a target to achieve commercial hydrogen production capacity of over 100,000 tpy by 2030.

The company will focus on the development of offshore wind and geothermal projects to increase its renewable generation capacity up to 2 GW.

It also plans to use carbon capture, utilization and storage (CCUS) technology to inject 2.5 million tonnes of CO₂ per year, by the end of this decade.

Inpex also plans to build one of the world’s largest carbon capture facilities in Australia, with an investment of up to $868 million (100 billion yen), Nikkei Asia reported.

The project will be equipped to capture and store the CO₂ produced by the Ichthys gas project, located offshore Australia. Inpex operates this gas project, with numerous joint venture partners.

Scheduled to start in 2026 at the earliest, the carbon capture and storage project will have a maximum annual capacity of more than seven million tonnes.

Inpex is currently in talks with companies for the proposed project, for which the site selection process is due to begin this year, at the earliest.

The Japanese company also reported a net profit of $1.9 billion (223 billion yen) in 2021, compared to a net loss of $966.5 million (111.6 billion yen) the previous year, benefiting rising oil and gas prices. Net sales were $10.7 billion (1,244 billion yen) in 2021, compared to $6.6 billion (771 billion yen) in 2022.

Last month, Inpex announced plans to undertake exploratory oil and natural gas drilling operations offshore Shimane and Yamaguchi prefectures, Japan.

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