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Inpex redirects condensate to ease Australian fuel crunch

Bloomberg Markets •
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Japan’s energy giant Inpex Corp. announced that it will release two extra cargoes of natural‑gas condensate from the Ichthys LNG project to Australian refiners. The move comes as the country struggles with fuel shortages that have tightened gasoline supplies. By diverting condensate—a by‑product of LNG exports—Inpex aims to ease domestic pressure without impacting its overseas contracts.

The first shipment, roughly 630,000 barrels—about 100 million liters—will leave the offshore facility in late April, with delivery slated for a refinery on Australia’s east coast in May. Because condensate is generated alongside LNG, the additional cargo does not require new production capacity, allowing a swift response to the shortfall.

For Australian refiners, the extra 630,000‑barrel influx represents a short‑term buffer that could stabilise gasoline margins and curb price spikes. Analysts see Inpex’s decision as a pragmatic use of by‑product inventory, reinforcing its role as a flexible supplier in the Asia‑Pacific energy market. The move underscores how LNG exporters can support domestic fuel security when crises arise.

The shipment does not affect Inpex’s long‑term LNG sales contracts, which remain valued at billions of dollars, preserving revenue streams while delivering immediate relief to the Australian fuel market.