Inpex President Director Australia Seiya Ito said Federal environmental approval represents a significant milestone for the project following a rigorous three-year assessment process, comprehensive environmental studies and extensive engagement with the community and other stakeholders.

“We are committed to developing and operating the Ichthys project in an environmentally and socially responsible manner and will continue to work closely with the government and community as we progress the project,” Mr Ito said.

The decision today by Mr Burke follows the Northern Territory Government’s announcement in May that the environmental impacts of the planned Ichthys development in Darwin can be managed within acceptable limits.

In June 2011 Inpex and the Northern Territory Government announced a $A91 million voluntary offsets program, including environmental research to protect marine life, savannah fire management to reduce greenhouse gas emissions and create jobs, and support for the establishment of the North Australian Hydrocarbon Centre of Excellence at Charles Darwin University.

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The Australian Government’s decision to grant environmental approval is a positive step toward final investment decision for the project which is to be made in December 2011.

In addition, Inpex announced it has a clear prospect of completing the sales of the entire 8.4 million tonnes per annum (MMt/a) of LNG from the Ichthys Project.

The Ichthys Project Joint Venture has reached an agreement with Chubu Electric Power Co., Inc. on LNG sales of 0.49 MMt/a, with Toho Gas Co.,Ltd. on LNG sales of 0.28 MMt/a and with CPC Corporation, Taiwan on LNG sales of 1.75 MMt/a, from the Ichthys Project over 15 years commencing in 2017.

Inpex and a TOTAL affiliate will also take a total of 1.8 MMt/a of LNG from the Ichthys Project.

LNG marketing negotiations are close to being finalised with five major Japanese utility companies. This results in that the LNG volume of 8.4 MMt/a will have been sold, with a large part of the Ichthys LNG to be delivered to Japan.

The LNG sales and purchase agreements with each of the respective buyers are expected to be signed in a timeframe to allow for the final investment decision, due in the fourth quarter of 2011.

The proposed Ichthys project includes a subsea production system, semi-submersible central processing facility, a floating production, storage and offtake vessel located at the Ichthys Gas Field in the Browse Basin, approximately 200 km off the northwest coast of Western Australia, and onshore gas processing facilities at Blaydin Point, Darwin, Northern Territory. An 885 km subsea gas pipeline will link the offshore and onshore facilities.