Two of the biggest LNG projects in the world are due to start production this year, both offshore Australia: Japanese Inpex’s US$34-billion Ichthys development, and Shell’s US$14-billion Prelude FLNG project. The projects are adjacent to each other, and according to Wood Mackenzie analysts, the Ichthys and Prelude may actually draw gas from the very same reservoir—turning the two into rivals in what is now a race to see who can get to the LNG first. According to one analyst, this winner of this race could have huge implications for the loser. “The difference between Prelude starting six months before versus six months after Ichthys could be a few percent of their reservoir stake. That is a material amount,” Wood Mac’s Saul Kavonic told Bloomberg. For now, Ichthys is scheduled to begin production before Prelude, so LNG analysts and traders are keeping a close eye on developments. What makes the […]