11 May 2021 10:46 GMT Updated 12 May 2021 8:36 GMT in Singapore
Japan’s Inpex has filed a lawsuit against compatriot JGC, one of the three-member JKC consortium relating to the protracted dispute over construction of the giant Ichthys liquefied natural gas export project in northern Australia.
JKC which comprises KBR of the US and Japan’s Chiyoda and JGC in 2012 was awarded the engineering, procurement and construction contract for the Ichthys onshore LNG project.
However, during the construction phase, subcontractors demanded additional payments to cover the increased costs. Inpex affiliate Ichthys LNG and JKC then entered into a deed whereby the operator provided interim funding of AS$757.7 million (US$591.4 million) to enable the consortium “to settle certain claims with its subcontractors”, Inpex informed on Tuesday. The deed provided that JKC was obliged to repay the entire funding on 31 December 2020.
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INPEX Corp. (INPEX) is continuing stable production operations at the Ichthys LNG Project in Australia through its affiliate, Ichthys LNG Pty Ltd (ILNG), alongside its project partners.
The construction of the onshore natural gas liquefaction plant of the Project was undertaken by JKC Australia LNG Pty Ltd (JKC), a consortium comprised of subsidiaries of the former JGC Corporation (JGC Holdings Corporation or the current JGC Corporation), KBR and Chiyoda Corporation.
During the construction phase, ILNG and JKC entered into a deed (the ‘Deed’), pursuant to which ILNG provided interim funding for an amount of AUS$757 727 884.46 (the ‘Funding’) to enable JKC to settle certain claims with its subcontractors. The Deed provided that JKC was obliged to repay the entire Funding on 31 December 2020.
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[Japanese-to-English translation by the Business & Human Rights Resource Centre]
On 21 Jan 2021, the Tokyo High Court handed down a decision in a karoshi lawsuit that NPO POSSE has been supporting [.]
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