Japan's Inpex to Spend Up to $38B in Growth Areas Over 9 years

Yuka Obayashi
Wednesday, February 9, 2022

Japan's biggest oil and gas explorer Inpex Corp said on Wednesday it will invest up to 4.4 trillion yen ($38 billion) in growth areas over the next 9 years, 1 trillion of which will be spent on decarbonization areas including hydrogen and ammonia.

"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 power," Inpex' CEO Takayuki Ueda told a news briefing.

Under the new long-term business plan, Inpex plans to continue to invest in liquefied natural gas (LNG) as a key growth fuel while taking measures to trim carbon dioxide (CO2) emissions.

For oil, the Tokyo-based company will make selective investment and ensure early production and early cost recovery as the long-term demand outlook is uncertain, Ueda said.

By around 2030, Inpex aims to boost its commercial production of hydrogen to more than 100,000 tonnes a year and inject 2.5 million tonnes of CO2 a year, using its carbon capture and utilization and storage (CCUS) technology.

It also plans to boost its renewable energy capacity to up to 2 gigawatts (GW) by 2030, mainly through offshore wind and geothermal power.
For 2021, Inpex reported a sharp turnaround in earnings thanks to soaring oil and gas prices, with net profit hitting 223 billion yen, against a net loss of 111.6 billion yen a year earlier when hefty impairment losses eroded its profits.

It predicted a 12% increase in profit this year to 250 billion yen.

Ueda said the Japanese government has asked Inpex to help with LNG supply to Europe amid growing tensions between Russia and Ukraine which pose a risk of energy supply disruptions.

"We'll try to respond to the request although it won't be easy as most of its LNG production is linked with long-term contracts," he said.

($1 = 115.4800 yen) 

(Reporting by Yuka Obayashi; Editing by Jacqueline Wong and Bernadette Baum)

Categories: Finance Energy Industry News Activity Asia Decarbonization

Related Stories

Pharos Energy Kicks Off Drilling Campaign Offshore Vietnam

Viridien to Shed More Light on Malaysia’s Offshore Oil and Gas Potential

US Pressure on India Could Propel Russia's Shadow Oil Exports

Energy Drilling’s EDrill-2 Rig Starts Ops for PTTEP in Gulf of Thailand

Eni-Petronas Gas Joint Venture Up for Launch in 2026

Vietsovpetro Brings BK-24 Oil Platform Online Two Months Early

Shell’s Brazil-Bound FPSO Starts Taking Shape

Seatrium Secures ABS Backing for Deepwater FPSO Design

PV Drilling Takes Ownership of Noble Corporation’s Stacked Jack-Up Rig

DOF Secures Moorings Hook-Up Job in Asia Pacific

Current News

Malaysia’s Petronas and Oman’s OQEP Strengthen Oil and Gas Ties

Southeast Asia’s 2GW Cross-Border Offshore Wind Scheme Targets 2034 Buildout

Pharos Energy Kicks Off Drilling Campaign Offshore Vietnam

Viridien to Shed More Light on Malaysia’s Offshore Oil and Gas Potential

US Pressure on India Could Propel Russia's Shadow Oil Exports

Energy Drilling’s EDrill-2 Rig Starts Ops for PTTEP in Gulf of Thailand

RINA Wins FEED Contract for Petronas’ Flagship CCS Project in Malaysia

ABL Secures Rig Moving Assignment with India's ONGC

Pakistan, Türkiye Deepen Oil and Gas Ties with Offshore Indus-C Block Deal

Eni-Petronas Gas Joint Venture Up for Launch in 2026

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com