Inpex said that through the project facilitation agreement (PFA) the Northern Territory government is demonstrating support for a potential liquefied natural gas (LNG) development at Middle Arm in Darwin.

Inpex is undertaking a range of studies to assess the viability of this option in comparison to other options also being assessed. The Japanese firm said that the construction of a two-train, eight million tonnes per annum LNG plant in Darwin will be a significant project undertaking and will deliver considerable economic benefit for the territory and northern Australia.

Jiro Okada, Inpex’s managing director, said: Our preferred option for an LNG plant is on the Maret Islands in the Kimberley, closer to the Ichthys field. We will consult widely with government, business and other key stakeholders, before the joint venture makes a decision later this year on the best location for the onshore LNG plant.