Japan’s Inpex, the operator of the Ichthys LNG development in Australia, said it has resolved a legal dispute with the project’s EPC contractor JKC.
Ichthys LNG filed a lawsuit against JKC Australia LNG in the Yokohama District Court earlier this year.
“Inpex hereby announces that a settlement deed has been concluded between Ichthys LNG (ILNG) and JKC, whereby the parties have agreed, amongst other matters, to the withdrawal of all claims between them concerning the EPC contract,” Inpex said on Friday.
This includes the withdrawal of the claim filed against JGC Holdings Corporation and JGC
Corporation, which hold the largest share in JKC, in the Yokohama District Court, Inpex said.
Inpex did not provide any additional information.
The EPC contractor is a joint venture consisting of JGC, which has a 40 percent share, and KBR and Chiyoda each with a 30 percent share.
It won the design and construction contract worth about $15 billion back in 2012 to build the 8.9 mtpa LNG plant at Bladin Point near Darwin.
The three firms have completed and delivered the facility in 2018.
During the construction phase, ILNG and JKC entered into a deed, pursuant to
which ILNG provided interim funding for an amount of A$757.7 million ($563.1 million) to the JV to enable JKC to settle certain claims with its subcontractors, Inpex has previously said.
According to Inpex, JKC had to repay the entire funding on December 31, 2020, but it did not and the parties entered into a legal dispute.
Ichthys LNG is a joint venture between operator Inpex and major partner France’s TotalEnergies.
Other partners include Australian units of CPC Corporation Taiwan, Tokyo Gas, Osaka Gas, Kansai Electric Power but also JERA and Toho Gas.