Regional LNG: Darwin LNG shipment delayed

The first shipment of liquefied natural gas from Darwin has hit a snag, with the tanker delayed in port for several days, The Australian reported Wednesday.

The Kotowaka Maru arrived at ConocoPhillips? Wickham Point plant in Darwin early last Wednesday to load the first cargo from Australia's second LNG export project.

The long-awaited shipment was due to leave Darwin within two days, but the 125,000 cubic metre carrier still remained in the port last night.

A ConocoPhillips spokesman was unable to say when the ship would leave, but defended the delay as a normal part of the commissioning process.

He said it was in "everybody's interest" for the ship to leave as soon as possible.

"There was an expectation that it would leave on the weekend, but during the commissioning process you get these issues and the ship will leave when it's ready to leave.

"We are loading the vessel, but we are loading it at a reduced rate. Generally, the first time you expect it to take longer because you are having to process a number of issues."

About 3 million tons of LNG, drawn from the Bayu Undan gas fields in the Timor Sea, have been contracted each year to Tokyo Electric and Tokyo Gas for 17 years.

LNG gas carriers are due to arrive in Darwin every seven to 10 days, with each load initially expected to take 10-12 hours.

Northern Territory Chief Minister Clare Martin said the arrival of the first tanker last week was "as big as it gets", with the shipment realising the long-awaited dream of turning Darwin into the nation's second international gas hub.

The delay of the shipment was also seized upon by the Maritime Union of Australia. "This will completely tarnish Australia's international reputation as a reliable supplier of LNG," said MUA national organiser Mick Killick.

But the ConocoPhillips spokesman said the shipment was actually ahead of its original schedule. (*)