Future Gas Strategy: consultation paper

INPEX Operations Australia Pty Ltd
ACN 150 217 262
22/100 St Georges Terrace Perth
Western Australia 6000
Tel +61 8 6213 6000
INPEX.com.au

Ref: C050-IPX-DFR-LE-70003

22 November 2023

Oil & Gas Division
Department of Industry, Resources and Science
Industry House
10 Binara Street
Canberra ACT 2601

RE: Future Gas Strategy

Dear

INPEX welcomes the Australian Government’s development of a Future Gas Strategy and the opportunity to participate in the consultation process. We view the initiative as a valuable step to promoting energy security and affordability, and to decarbonising
Australia and the Indo-Pacific region.

The economic security of Japan is founded on stable energy supply. Japan is, however, almost entirely dependent on energy imports—vulnerability that was exposed during the oil crises of the 1970s. The recent spike in global energy prices following Russia’s invasion of Ukraine—this time, including that of natural gas—has only heightened this sensitivity.
Liquified natural gas (LNG) is at the heart of Japan’s energy needs, and currently accounts for about 40 per cent of Japan's power generation and almost all of the country’s city gas. Australia plays a critical role in meeting Japan’s energy needs and supplies some 42.7 per cent of Japan’s LNG market.

INPEX was first founded as a Japanese government-owned entity to boost Japan’s energy security. Today, INPEX CORPORATION (INPEX) is an international energy company listed on the Tokyo Stock Exchange but remains 21.19 per cent owned by the Japanese government. Energy security for Japan remains in the company’s DNA.

INPEX has been an active member of the Australian business community since 1986 and, as operator of Ichthys LNG, is the largest Japanese investor in the country. Approximately
70 per cent of LNG from Ichthys LNG is contracted into Japan and Ichthys LNG contributes approximately 10 per cent of Japan’s LNG imports. Ichthys LNG is the first Australian project to enter a long-term sales and purchase agreement with Taiwan and accounts for approximate 15 per cent of Taiwan’s LNG imports.

While focused on gas exports, Ichthys LNG has arrangements in place with Northern
Territory Power and Water Corporation (PWC) that allow for the vital provision of emergency gas supply to PWC. When called upon by PWC to supply emergency gas we have responded. Gas supply from Ichthys has directly assisted in avoiding potential

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electricity blackout scenarios in the Darwin area and provided security and stability for the
Northern Territory gas market.

As a pioneer in energy transformation, INPEX aims to provide a stable supply of diverse and clean energy sources including oil and natural gas, hydrogen and renewable power. Last year, the company released its business strategy roadmap INPEX Vision
@2022, which sets out the path to achieving the target of net zero emissions by 2050 while providing a stable supply of diverse and clean energy sources.

In INPEX Vision@2022, Australia has been identified as one of five international regions globally prioritised by the company for future investment opportunities. It calls for an acceleration of exploration activities in the vicinity of the Ichthys Field as well as the development of discovered but undeveloped assets. INPEX is interested in increased gas production volumes to expand the Ichthys LNG facilities from 2030 and ensure sustained gas production volumes in the long term.

INPEX is also committed to an interim target of 30 per cent reduction in scope one and scope two net carbon intensity over 2019 levels by 2030. We are aligned in our mission with United Nations Sustainable Development Goal 7 to ensure access to affordable, reliable, sustainable and modern energy for all.

We were pleased to see the future of gas is being considered within the framework of the transition to net zero and confirm our support for the Australian Government’s updated commitments under the Paris Agreement. However, INPEX considers the focus on a reduction in gas demand as a policy premise is premature. We believe the best policy levers are those that facilitate the goal of net-zero emissions by 2050 while also supplying reliable energy in the most efficient way possible. As the pathway for the global energy transition is not predetermined, it would be prudent to keep all power generation options open, particularly when it comes to managing the risks to energy security. Indeed, events such as the Fukushima Daiichi nuclear accident and the war in Ukraine are sombre reminders of the inherent uncertainty in global energy markets.

INPEX is of the view that material decarbonisation of oil and gas operations must go hand- in-hand with the continued role for gas in Australia. Decarbonisation of the Ichthys LNG facilities and its progress to net zero emissions remains a significant challenge. This challenge is approached by INPEX through the application of a hierarchy of greenhouse gas (GHG) emissions controls that seeks to first avoid and abate emissions and then utilise offsets only where abatement cannot be achieved within necessary timeframes. The key decarbonisation opportunities that are currently being pursued by INPEX in relation to the
Ichthys LNG facilities are, (1) carbon capture and storage (CCS) to sequester native reservoir carbon dioxide (CO2) vented from acid-gas removal units, (2) import of power with a high percentage of renewables, replacing in a staged manner the thermal power currently generated on-site at its combined cycle power plant and (3) fuel-switching from gas to hydrogen for currently gas-fired turbines where electrification of such brownfields installations is impractical.

INPEX is also of the view that diversification of energy sources beyond natural gas must accompany efforts to decarbonise oil and gas. This year, INPEX acquired Cash Maple acreage to support long-term production at Ichthys LNG, but also acquired a 50 per cent stake in Enel Green Power Australia, bringing the company firmly into the Australian renewable energy space.

We hope to continue this trajectory in Australia, which is one of five core regions globally prioritised for future investment opportunities. As a first world OECD country with stable policy settings and rule of law, Australia has long represented an attractive investment location.

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In the attached submission, INPEX identifies three key principles that the Government may wish to consider in its Future Gas Strategy:

1. Recognition of the important role of gas in the energy transition of Australia and
the Indo-Pacific region;
2. Stable and predictable policy settings—including clear and streamlined approvals
pathways for environment plans, exploration acreage releases and carbon capture
and storage—and reduced red tape; and
3. Incentives for decarbonisation.

INPEX also recommends the Australian Government consider establishing an ‘Australian
LNG Producer-Consumer Taskforce’ involving major Australian LNG consumer countries’ governmental representatives as well as Australian LNG consumers and producers in facilitating intensive and detailed discussions around the key supply and demand requirements that should be considered in developing a Future Gas Strategy. The
Taskforce would be able to provide insightful and valuable inputs into the Federal
Government’s future policy settings.

Australia and Japan have long shared a highly complementary relationship in the energy and resources sectors. At INPEX, we are proud of the part we have played in this story.
As we work to transition to a low carbon society, we see this trusted relationship between
Australia and Japan as growing from strength to strength, delivering sustainable energy and economic prosperity to the people of both countries.

Our views are also reflected in the submission by the Australian Energy Producers. We also note that while we have consulted with the Japanese Government on these matters, our submission represents solely the views of INPEX.
, can be contacted for further information at .

Yours sincerely

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INPEX Operations Australia Pty Ltd
ACN 150 217 262
22/100 St Georges Terrace Perth
Western Australia 6000
Tel +61 8 6213 6000
INPEX.com.au

INPEX SUBMISSION
FUTURE GAS STRATEGY
Future Gas Strategy – Submission – INPEX

Australian LNG in the world’s transition to net zero

12. What do you see as the role of gas in Australia’s net zero transformation?

INPEX considers that appropriately decarbonised gas can have an enduring role in Australia’s net zero transformation. Further, if supply can be appropriately managed, gas can provide a cost-effective mechanism to achieve the dual goals of decarbonisation and economic growth.

The specific role that natural gas will play, both domestically and abroad, depends on numerous variables, including policy settings, pricing, the uptake of renewables, coal-to-gas switching and use in the production of low emissions fuels.

The increased penetration of renewable power within Australia’s energy mix will come with an increased need for flexible grid security mechanisms—and gas-fired generation with Carbon Capture and Storage (CCS) can play a key role in addressing long intermittency and peak period requirements.
This will especially be the case as coal-fired generation is phased out and the age of Australia’s coal- fired fleet begins to impact grid security. Additional gas-fired capacity can be implemented with CCS and with the intention to co-fire this generation with increasingly higher portions of clean fuels, such as hydrogen or ammonia, as these become available at scale.

Beyond its use in power generation, abated gas and clean fuels produced from natural gas, such as hydrogen and ammonia, can have application in constant high heat processes as a reactant/feedstock and in heavy transport. This can enable decarbonisation across a broad cross-section of industry. The availability at scale of low-cost clean fuels underpinned by ready access to abated gas can also be a key factor in the development of new industries in Australia, such as the onshoring of iron or steel production.

Gas is used in a diverse range of applications across the economy including home heating/cooking, power generation, manufacturing, packaging, fertiliser, mineral/metals processing, etc. As such, INPEX believes the Government should carefully consider the practical availability of abatement technologies and associated timeframes of implementation for both gas suppliers and consumers in developing the
Future Gas Strategy and any associated policy design. Options for substantial emissions reductions are limited until closer to 2030 due to the timeframes for the implementation of material abatement projects using available technologies (such as CCS/hydrogen) and the practical availability of emerging low carbon emissions technologies (such as direct air capture/post combustion capture). Practical timeframes for the implementation and deployment of facilities that are suitable for the use of low/zero emissions fuels (such as hydrogen and ammonia) should also be carefully considered, since this is one of the key factors that will have a material impact on gas demand.

Looking back the history of liquified natural gas (LNG) industry, it was in 1969 that Japan imported the very first LNG cargo from Alaska and in 1989 that Japan imported first LNG cargo from Australia. This highlights how the LNG industry took decades to reach the level of maturity enjoyed today—with LNG having become a reliable, affordable, flexible, and relatively low-emissions energy source for consumers around the world. Considering the history of LNG, the complexity of our global energy system and the significant challenge of rapidly deploying abatement technologies in both gas suppliers and consumers facilities, the transition from today’s fossil-fuel based energy system to a net zero based energy system will likely require a multi-decade timeframe to reach a similar level of maturity as seen in the LNG industry today. Accordingly, abated (low-emissions) LNG—such as the LNG produced from a facility equipped with CCS and with required energy sourced from renewables or decarbonised fuel—will likely play a significant role during the transition period.

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Future Gas Strategy – Submission – INPEX

Regions and individual countries will take a variety of pathways to achieve net zero. This variability creates significant uncertainty as to the optimal path for Australia to take to ensure both decarbonisation and economic development. Facing this uncertainty and working towards energy transition while ensuring energy access both in Australia and abroad means simultaneously working towards the decarbonisation of the energy options that Australia currently has and creating an environment in which other options may develop.

Given the prevailing and continued uncertainty associated with the energy transition, INPEX believes that a concentration on reduction in gas demand as a policy premise is premature. We do not consider that reductions in natural gas are axiomatic to a clean energy transition. Rather, the fundamental mechanism is decarbonisation, which includes ensuring that gas is produced and consumed in a way consistent with net zero by 2050. The notion that reducing gas demand is a key mechanism for decarbonisation does not allow for the material role gas can play in hydrogen production and in power generation.

The reformed Safeguard Mechanism, along with renewable energy targets, will drive deep decarbonisation through industry and power sectors. Gas will be key to ensuring that such transformative change can be undertaken in a way that enables climate targets to be met, assists producers and consumers of gas to remain globally competitive and provides for economic growth.

INPEX believes that it would be prudent for Australia to keep all options for decarbonisation open.
Providing an environment in which a broad range of decarbonisation measures can be developed and deployed reduces the risk to Australia achieving its climate targets. Policies that seek to address energy demand more broadly through improvements in energy efficiency or changes in energy use behaviour would be valuable in addressing all aspects of the energy trilemma (sustainability, security and affordability).
While back-casted projections, such as the International Energy Agency’s (IEA) Net Zero Emissions by
2050 scenario, are valuable in determining possible trajectories and changes to arrive at a future state, these should not be used as a direct prediction of the development of decarbonisation technologies.
If the behavioural changes and assumed rates of deployment of various technologies do not meet projected assumptions, then overall decarbonisation efforts may be hampered. It is important therefore to recognise this scenario analysis for the tool that it is, while at the same time continuing to undertake careful and considered energy supply planning to ensure all elements of the energy trilemma are addressed in the near, mid, and long term.

In developing gas policy, we suggest the Government consider the ways in which new policy interacts with existing policy measures. The Government should consider the appropriate timing for measures to be enacted to take advantage of developments in decarbonisation technologies, which may, in turn, assist in the effectiveness of the policy.

For context, the INPEX-operated Ichthys LNG facility has arrangements in place with Northern
Territory Power and Water Corporation (PWC) to allow for the vital provision of emergency gas supply to PWC. When called upon by PWC to supply emergency gas we have responded. This gas supply has directly assisted in avoiding potential electricity blackout scenarios in the Darwin area and provides security and stability for the Northern Territory gas market.

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Future Gas Strategy – Submission – INPEX

13. What action is your industry or company taking to reduce greenhouse gas emissions and does gas use have a role to play?

INPEX recognises that climate change is a critical business issue that requires governments, civil society and the business community to work together to achieve the goals of the Paris Agreement.
Last year, we released our business strategy roadmap INPEX Vision@2022. It sets out the path to achieving our target of net zero carbon emissions by 2050 while providing a stable supply of diverse and clean energy sources, including oil and natural gas, hydrogen and renewable energy. Further,
INPEX is committed to an interim target of a 30 per cent reduction in scope one and scope two net carbon intensity over 2019 levels by 2030. Australia is one of five core regions globally prioritised by the company for future investment opportunities.
The minimisation of greenhouse gas (GHG) emissions and maximisation of energy efficiency has been amongst the key drivers in the design and operational philosophies for the Ichthys LNG Project. During the design process of the facility, a number of specific decisions were made to decrease the overall
GHG emissions of operations. The implementation of a combined cycle power plant, waste heat recovery system, the recycling of process and tank off-gasses and the employment of compressor dry gas seals, served to increase energy efficiency, reduce the need for routine venting and flaring and minimise fugitive emissions.

Despite the implementation of these decarbonisation technologies, the further decarbonisation of
Ichthys LNG and its progress to net zero emissions remains a significant challenge. This challenge is approached by INPEX through the application of a hierarchy of GHG emissions controls that seeks to first avoid and abate emissions, and then utilise offsets only where abatement cannot be achieved within necessary timeframes.

The key sources of emissions at the Ichthys LNG facilities are related to the production of native reservoir carbon dioxide (CO2), combustion of gas in power generation and combustion of gas in compressor turbines. The key decarbonisation opportunities that are currently being actively pursued by INPEX in relation to the Ichthys LNG facility are:

• CCS to sequester native reservoir CO2 vented from acid-gas removal units;
• Import of power with a high percentage of renewables, replacing in a staged manner the
thermal power currently generated on-site at its combined cycle power plant;
• Fuel-switching from gas to hydrogen for gas-fired turbines where electrification of such
brownfields installations is impractical.

CCS

INPEX has historically studied several options to reduce GHG emissions generated by Ichthys LNG. One of the mitigation options that has been considered is Carbon Capture and Storage (CCS) involving re- injection of the reservoir CO2 removed from the produced gas during LNG processing at the onshore processing facility near Darwin. The deployment of CCS technologies likely offers the most significant opportunity to materially reduce GHG emissions generated by Ichthys LNG. CCS is also a necessary precursor for generating low-carbon hydrogen from natural gas, which is part of the fuel decarbonisation strategy (see below).

In 2022, the INPEX-led Bonaparte CCS Assessment Joint Venture was awarded a GHG storage assessment permit (title G-7-AP). The permit was awarded following Australia’s 2021 Offshore
Greenhouse Gas Storage Acreage Release and is in the Bonaparte Basin off the northwestern coast of the Northern Territory of Australia, an area considered to be highly prospective for geological storage

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Future Gas Strategy – Submission – INPEX of CO2 in service of CCS activities. Since the award of this acreage, INPEX has pursued relevant regulatory approvals to undertake exploratory drilling as a part of an evaluation and appraisal work program. Efforts to date have been significantly impacted by the complexity and uncertainty around the extent of stakeholder consultation required to obtain acceptance of environment plans.

The proposed Bonaparte CCS Assessment project is more than simply a means to decarbonise Ichthys
LNG. It is also a step towards a world-scale CO2 storage operation that would not only underpin expansion plans for Ichthys LNG, but also support the development of the 1500-hectare Middle Arm
Sustainable Development Precinct and the Northern Territory Low Emissions Carbon Capture
Utilisation and Storage Hub. The hub concept offers the potential to facilitate carbon reduction for third party operations and to underpin the development of new energy, such as hydrogen. It also has a potential to import CO2 from countries that have limited sites available for CO2 storage that contributes to and facilitates the Indo-Pacific region's decarbonisation efforts.

Renewable power-import and fuel-switching

INPEX considers that gas will play a direct and important role in the viability of renewable power- import and fuel-switching.

LNG production requires a significant amount of highly reliable power to be generated to ensure safe and efficient operations. INPEX considers that conversion of significant portions of the onshore Ichthys
LNG facility to using renewable energy sources is possible and represents an important option to decarbonise its operation. One of the key challenges in a switch to greater use of renewables is ensuring that reliability needs are met. Associated firming requirements need to not only cater for normal diurnal and seasonal variations in renewable energy generation, but also provide coverage for emergency scenarios should such generation not meet output requirements for extended periods and achieve this economically. Fast-ramp gas-fired generation will be critical in achieving the necessary reliability characteristics in an economic way, both in the near term and into the future. Gas-fired generation, unlike battery storage, is not energy constrained, providing for sustained long-term grid stability that is cost-effective and scalable.

The scale of renewables demand associated with conversion of the Ichthys LNG facility and other industrial facilities with similar demand characteristics can materially contribute to the achievement of Australia’s renewable energy target.

To provide surety as to the reliability of an energy mix with a high percentage of renewables and to unlock demand where reliability is a key focus, gas-fired generation will be critical. In this way, INPEX considers that gas is critical to meeting renewable energy targets.

The conversion of the gas-fired turbines that drive large compressors in the Ichthys liquefaction train to instead utilise hydrogen as a fuel source has been identified as the technology pathway with the greatest potential to reduce emissions from these turbines.

INPEX believes that gas will have an important part to play in the economic realisation of hydrogen.
The IEA’s Global Hydrogen Review 2021 indicates that the levelised cost of low-carbon hydrogen produced from natural gas with CCS continues to be the most cost-effective way to produce hydrogen out to 2050.

INPEX recognises the benefit of minimising methane emissions given their more powerful warming effect in the short term compared to CO2. The Ichthys LNG facility incorporates modern technologies that reduce the need for routine venting and flaring, thereby minimising fugitive emissions. To find and address fugitive emissions, a Leak Detection & Repair (LDAR) program is in place. This program

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Future Gas Strategy – Submission – INPEX involves routine inspections, leak classification, leak investigation and risk assessment, and corrective and monitoring actions. INPEX has additionally undertaken internal assessment pursuant to joining the United Nations Environment Programme led Oil and Gas Methane Partnership 2.0 (OGMP 2.0).
The OGMP 2.0 framework was released in 2020 as a comprehensive global measurement-based reporting framework of methane emission specifically for the oil and gas industry. Joining OGMP 2.0 will represent a commitment to proactively improve detail in methane emission reporting and reducing methane emissions.

14. How can Australian LNG accelerate global decarbonisation without compromising energy security or affordability?

The size and maturity of Australia’s LNG export industry along with its proximity to growing markets in Asia, mean that Australia is well placed to make a significant contribution to global decarbonisation efforts and maintain energy security and affordability for the consumer countries, whilst providing a significant continued contribution to Australia’s economic growth.

The key areas in which Australian LNG can be used to accelerate global decarbonisation are:

• As a fuel source for gas-fired generation that replaces coal or oil-fired generation;
• As a firming and reliable fuel source for gas-fired generation to support the expansion of
renewable power generation; and
• As a feedstock for the production of hydrogen.

Gas price and supply shocks in 2022 highlighted that all three aspects of the energy trilemma
(sustainability, security and affordability) require management through balanced integrated policy if climate ambition is to be realised. High LNG prices caused by surges in European demand to replace
Russian supply triggered a switch from gas to coal (particularly in South Asia) and resulted in policies that will have a lasting impact on global decarbonisation efforts. For example, Pakistan is aiming to quadruple coal-fired generation by 2030. Such outcomes are a warning that progress on the sustainability front cannot be reliably achieved without simultaneously considering and balancing security and affordability. This further emphasises the need for reliable and diversified energy sources including gas.

Appropriate and timely investment across the gas value chain to achieve market balance, addressing natural supply decline and enabling growth in particular regions, will ensure that gas can continue as an affordable, sustainable and secure energy source. Gas can play a key role in accelerating global decarbonisation by providing gas-fired grid support for renewables and coupled with investments in post combustion capture and CCS to directly decarbonise gas-fired generation.

The current stage and rate of the energy transition is variable across different regions. In developing regions where there is still significant energy poverty and/or a large amount of coal-fired generation, gas-fired generation can provide a stable, highly flexible mechanism for the provision of affordable energy, while simultaneously lowering the emissions intensity of generation. Further, transitions to high renewable energy generation mix will lead to an increased need for reliable, dispatchable, responsive balancing sources to ensure appropriate grid security. Gas-fired generation can play a key and enduring role in addressing long intermittency and peak period requirements. INPEX considers that gas-fired generation and battery energy storage systems (BESS) offer different benefits as flexible energy sources. Energy-limited BESS offer the most value as a relatively short-duration rapid response mechanism and gas generation provides value as a long-duration dispatchable reserve. These energy

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Future Gas Strategy – Submission – INPEX sources are complementary in nature—not mutually exclusive—and both will be needed going forward.

Mature technologies for the transportation of LNG allow for high accessibility especially in developing or resource scarce regions and remote areas where pipeline infrastructure might not be viable.

The rapid scaling of the production of affordable low carbon fuel sources is also critical to the energy transition. Natural gas can serve a key feedstock to the production of hydrogen and its carrier gas, ammonia.

The economic production of hydrogen is one of the key challenges faced in the expansion of this decarbonisation option. Even considering significant subsidies, such as those provided in the United
States (US) under the Inflation Reduction Act and through the European Hydrogen Bank auction, the levelized cost of hydrogen produced using renewable sources is still far greater than that produced with natural gas. The capital cost of electrolyser technology will need to be significantly reduced and the cost of renewable power will need to significantly decrease for hydrogen produced with renewables to reach typical costs of hydrogen produced with natural gas. The IEA’s Global Hydrogen
Review 2021 indicates that the levelised cost of low-carbon hydrogen produced from natural gas with
CCS continues to be the most cost-effective way to produce hydrogen out to 2050. Pursuing the production of low-cost hydrogen will promote faster and deeper decarbonisation.

Low emission production processes for hydrogen with natural gas as a feedstock are steam methane reformation (SMR) and autothermal reformation of methane (ATR), both with CCS. Reformers achieving 90 per cent overall carbon capture or more can be built today using commercial technology.

Compared to renewable hydrogen, clean hydrogen produced from gas with CCS requires very modest amounts of land and electricity. Such considerations are important to countries such as Japan where land and renewable power are at a premium.

The development of new gas-fired power technologies—such as the Allam-Fetvedt supercritical carbon dioxide (sCO2) power cycle (AFC), a natural gas-fired power plant that generates no atmospheric emissions and is capable of fully capturing CO2—is evidence that natural gas continues to be considered an important fuel at the cutting edge of energy transition development.

15. What measures will increase the transparency of LNG supply chains, including their environmental, social and governance impacts?
The development of clear, globally aligned frameworks and standards for reporting could increase the transparency of LNG supply chains. In the development of such standards, it would be important to:

• Provide for reporting standards that can be applied to all energy supply chains more broadly
than LNG; and
• Establish and obtain alignment as to the purpose of such reporting.

Frameworks and standards that are globally aligned could, with specific regard to LNG, underpin and give increased credibility to trade in carbon-neutral LNG and provide a clearer way to measure the impact of LNG production and supply.

17. What role will LNG – and Australian LNG in particular – play in your economy’s energy transition?

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Future Gas Strategy – Submission – INPEX

Australian LNG has played—and will continue to play—a critical and indispensable role in the energy transition, energy security and energy affordability of Japan and the Indo-Pacific region, as detailed below. In this regard, INPEX recommends the Australian Government should consider establishing an
‘Australian LNG Producer-Consumer Taskforce’ involving major Australian LNG consumer countries’ governmental representatives as well as Australian LNG producers and consumers in facilitating intensive and detailed discussions around the key supply and demand requirements that should be considered in developing a Future Gas Strategy. The Taskforce would be able to provide insightful and valuable inputs to the Federal Government’s future policy settings.

Role of LNG in Japan’s energy transition

LNG forms the core of Japan’s energy supply, accounting for about 40 per cent of Japan's power generation and almost all of the country’s city gas. Japan is poor in domestic energy resources and relies on imports for most of its energy requirements. Currently, the supply of combustible natural gas, including LNG, depends on imports for about 98 per cent of its supply. The share of natural gas
(LNG) in Japan’s primary energy supply has increased to 21.4 per cent in FY 2021 (Apr 2021 to Mar
2022), particularly after the Fukushima Daiichi nuclear accident in 2011, to compensate for the sharp decline in nuclear power supply. The share continues to exceed the pre-accident level. Australian LNG plays a critical role in meeting Japan's energy needs. According to the Japanese Ministry of Finance trade statistics, Japan imported 72 million tonnes of LNG in CY2022 (Jan 2022 to Dec 2022), of which
31 million tonnes came from Australia, accounting for 42.7 per cent of the total.

Japan's energy transition requires a move away from coal and oil, which accounted for 25.8 per cent and 36.0 per cent respectively in the primary energy supply in FY2021. LNG is a logical candidate to replace, in part, coal and oil. As coal and oil-fired power plants exit the market, natural gas is utilised as a dispatchable power source to compensate renewable energy. As a base-load power source, gas is indispensable in the transition to carbon neutrality.

The Sixth Basic Energy Plan (the Plan) formulated by the Japanese Ministry of Energy, Trade and
Industry (METI) in October 2021, highlights that LNG is positioned as "essential for achieving zero emissions" and "an important energy source even after the realisation of a carbon-neutral society".
The Plan calls for a shift to natural gas through fuel conversion and other measures in various sectors, thereby contributing to the country’s decarbonisation plans. According to Japan’s primary energy supply forecast for FY2030 (which is only available up to FY2030) published by METI in conjunction with the Plan, oil and coal are expected to decrease their share significantly from the current level due to the increase of renewables, while natural gas is expected to remain largely unchanged at around an 18 per cent share. The Plan also expects natural gas to be used as a raw material for in the production of hydrogen and ammonia (which do not emit CO2 when combusted), facilitated by the use of CCS and other technologies. As oil-fired power plants are being mothballed and inefficient coal- fired power plants are being phased out, the thermal power generation fleet becomes more heavily weighted toward LNG-fired power plants in Japan.

Australian LNG makes an important contribution to Japan’s energy security. Australia’s geographic proximity avoids sea lane risk associated with Middle Eastern geopolitics and other factors, reduces procurement risk due to increased competition for acquisition as fossil fuel demand increases in Asia, especially China, and contributes to improving resilience in terms of CO2 emissions per unit of power generated and stockpiling and storage ease. Furthermore, long-term LNG supply contracts with
Australian LNG projects also contribute to Japan's energy security, as Australian LNG is typically highly stable in supply.

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Future Gas Strategy – Submission – INPEX

INPEX highlights the importance of the Australia-Japan Ministerial Economic Dialogue Joint Ministerial
Statement published on 8 October 2023, particularly statements 4 and 5 below.

• As reaffirmed by Prime Minister Albanese to Prime Minister Kishida on 9 September 2023,
Australia has committed to remaining a reliable supplier of resources and energy to Japan and
the region now and into the future. This applies to traditional energy commodities such as
coal and LNG, as well as new energy supply, hydrogen and ammonia, as countries decarbonise
their economies to meet their net-zero and Paris Agreement commitments. Ministers agreed
to ensure stable energy supply and to provide investment certainty in the transition period
based on mutual trust. Japan welcomed Australia’s bid to host the UN Framework Convention
COP31 Climate Conference in 2026 in partnership with Pacific Island Countries and its aims to
accelerate global climate action.
• Ministers acknowledged the importance of following various pathways for energy transition
while achieving economic growth, ensuring energy security, and addressing decarbonisation.
They noted the importance of LNG along with renewables and energy storage technologies in
the energy transition. Ministers recognised the importance of Australia’s and Japan’s energy
relationship to both countries’ economic, security and decarbonisation agendas.

Role of LNG in Asia’s energy transition

Energy costs underpin the foundations of industrial activities and have a significant impact, including upon long-term business strategies such as where to locate operations. Therefore, minimising energy transition costs is important to maintain and strengthen the industrial competitiveness of Japan and
Asia more broadly and to facilitate further economic growth.

Asia will be at the centre of the increasing global energy demand as it continues to undergo significant economic development and as industrialisation and energy access progresses. Since COP26, many
Asian countries have announced carbon neutrality targets by 2050 or 2060. Reducing GHG emissions while expanding energy supply is a daunting challenge. To achieve both economic development and carbon neutrality, it is necessary to reduce emissions at minimum cost.

The implications of the analysis contained in the Outlook 2024 publication prepared by the Institute of Energy Economics, Japan (IEEJ), one of the leading think tanks in the world, are worth noting. The objective of the analysis was to seek an optimum energy mix that can achieve the carbon neutrality goals of ASEAN countries at the lowest possible cost and guide realistic energy transitions. The IEEJ analysis compares the (1) ‘Most optimum (energy mix) case’ with (2) ‘Gas-constrained case' where natural gas supplies do not increase from the current levels and (3) ’80 per cent renewable energy case’ where the share of renewable energy in the power supply mix is fixed at 80 per cent, compared to 60 per cent in the most optimum case.

• Under the most (cost) optimum case, the GHG abatement cost required for ASEAN as a whole
to achieve net zero emissions in 2060 is USD 570 billion (2015 real prices), equivalent to 3.3
per cent of GDP.
• Under the Gas-constrained case, while the incremental cost of GHG reductions in 2060 is
relatively small (3.6 per cent of GDP), the incremental cost at the 2030-2040 transition period
is large. This result suggests that natural gas has a significant role to play in providing relatively
low-cost, low-emissions energy, particularly during the transition period.
• Under the 80 per cent renewable energy case, costs rise to 4.4 per cent of GDP in 2060 and
the increase is particularly significant in 2050-2060. This is because, in order to increase
renewable energy to this level, it will be necessary to introduce renewable energy in areas

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Future Gas Strategy – Submission – INPEX

with unfavourable climatic and topographical conditions, and the integration costs for dealing
with power output fluctuations (e.g. storage batteries) will be high, leading to an increase in
overall system costs.

GHG abatement costs (ASEAN as a whole, % of GDP) – IEEJ Oct 2023

Overall, natural gas is a fuel that supports not only the zero-emissions target year, but also final energy consumption in transitional periods, particularly in industrial furnaces, which are difficult to electrify, and in adjusting supply and demand for power generation. Steadily expanding gas supply capacity is an important measure for achieving a low-cost and stable energy supply for Asian countries.

18. What is your economy’s current LNG demand and how do you predict this will change through to 2035 and beyond to 2050?

In October 2021, METI published Japan’s latest energy supply and demand outlook for FY2030. This outlook is based on the view that climate change is a pressing issue common to all humankind, and on the ambitious GHG emissions reduction targets for 2030, mainly set by the developed countries.
Japan's has an ambitious target of a 46 per cent reduction in GHG emissions by FY2030 from the
FY2013 levels consistent with its 2050 target and the country’s commitment to continue achieving the
50 per cent goal. The outlook shows what the energy supply-demand outlook would look like if Japan were ambitious enough to overcome the various challenges, on both the supply and demand sides, in promoting thorough energy conservation and expansion of non-fossil energy sources to achieve a 46 per cent reduction.

Japan’s energy demand by FY2030 is expected to increase from the current level due to economic growth and other factors, however a significant improvement in energy efficiency over the post-oil crisis level (refer to graph below) is expected through promotion of energy conservation. Specifically, based on the economic growth rate in the economic revitalisation case in the Japanese Cabinet
Office's "Estimates for the Medium and Long-term Economic and Fiscal Outlook" (July 2021), the latest population estimates (medium estimate) by the Japanese National Institute of Population and Social
Security Research, METI has accumulated as many technically feasible and realistic energy conservation measures as possible in the industrial, business, residential, and transportation sectors, by implementing energy conservation of about 62 million kilolitres (kl) of oil equivalent (1kl = 6.29

9
Future Gas Strategy – Submission – INPEX barrel) in final energy consumption, with energy demand in FY2030 expected to be about 280 million kl.

Japan’s primary energy supply to meet this energy demand in FY2030 is expected to be about 430 million kl, of which about 31 per cent will come from oil, 22-23 per cent from renewable energy, 18 per cent from natural gas, 19 per cent from coal, 9-10 per cent from nuclear power and 1 per cent from hydrogen and ammonia. Under this scenario, natural gas demand in FY2030 is around 77.4 million kl which is around 25 per cent lower compared to FY2021 levels.

As for Japan’s natural gas (LNG) demand in 2050, although METI has not published its outlook, the IEEJ published its IEEJ Outlook 2024 in October 2023. The IEEJ Outlook 2024 incorporates two scenarios of technological and policy developments and trends: (1) the Reference scenario and (2) the Advanced technologies scenario, as follows:

• Reference scenario: Incorporates past trends and the expected effects of the extension of
energy and environmental policies and technologies to date.
• Advanced technologies scenario: Anticipates maximum CO2 emissions reduction measures
based on the application opportunities and acceptability in society, including the full-scale
introduction of hydrogen, and enhanced energy security measures.

According to the IEEJ Outlook 2024, Japan’s primary gas consumption is projected to decline as referred to in the following table, but the pace of the decline varies depending on the economic/population growth, improvements in the energy efficiency, deployment of advanced energy technologies. This is also the case for the world and Asia.

Reference scenario

Primary gas consumption Change
(MMtoe)
2021 2030 2050 2021/2030 2021/2050
World 3,487 3,660 4,519 +5% +30%
Asia 722 923 1,317 +28% +82%
Japan 1,907 1,578 1,490 -17% -22%
Advanced technologies scenario

Primary gas consumption Change
(MMtoe)
2021 2030 2050 2021/2030 2021/2050
World 3,487 3,541 3,044 +2% -13%
Asia 722 906 684 +25% -5%
Japan 1,907 1,381 526 -28% -72%

This variance in the outlook is also seen in IEA’s report ‘Outlooks for gas markets and investment’ published in May 2023 (below graph). Comparing growth projections across a sample of global assessments, the consensus view is that natural gas fares moderately well in the coming decade, but there are large divergences beyond that. From a starting level of 4,200 Bcm in 2021, two scenarios anticipate natural gas to rise above 5,000 Bcm by 2050, four scenarios see demand in a range between
4,000 – 5,000 Bcm, another four fall in a range between 2,500 – 4,000 Bcm, while the remaining four scenarios see demand below 2 500 Bcm by 2050.

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Future Gas Strategy – Submission – INPEX

This is also the case for the latest World Energy Outlook 2023 (WEO2023) published by the
International Energy Agency (IEA) and International Energy Outlook 2023 (IEO2023) published by the
US Energy Information Administration (EIA) in October 2023.

• IEA WEO2023: World natural gas demand in 2050 ranges from the Stated Policies Scenario
(STEPS) of 4,173 Bcm to the Announced Pledges Scenario (APS) of 2,422 Bcm to the Net Zero
emissions by 2050 (NZE) scenario of 919 Bcm.
• EIA IEO2023: Regarding the world natural gas consumption in 2050, six scenarios out of seven
scenarios are above 5,000 Bcm (the only scenario in a range between 4,000 – 5,000 Bcm is the
low economic growth scenario).

This suggests that the Australian Government should not rely on a single back-cast outlook such as the
IEA’s Net Zero by 2050 scenario which defines a future ‘landing point’ and charts a possible path to reach it. Rather, Australia should adopt a flexible policy in maintaining its LNG supply and competitiveness in meeting global LNG demand.

In the midst of great uncertainty and the assumption that many innovations must come to fruition in order to achieve carbon neutrality by 2050, METI believes that there is a significant risk for Japan—a relatively small country with few natural resources—to immediately give up fossil fuels, including natural gas. METI has therefore positioned natural gas (LNG), which has the lowest GHG emissions among fossil fuels, as an important "transition energy" and has decided to further promote independent development of oil and natural gas by acquiring overseas interests and promoting domestic resource development, in order to further enhance its ability to respond to changes in international circumstances and secure stable and affordable energy supplies.

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Future Gas Strategy – Submission – INPEX

19. What options should the Australian Government consider to ensure international investment in
Australian LNG projects remains competitive?

INPEX’s investment strategy roadmap, INPEX Vision@2022, lists Australia as one of five core regions globally to be targeted for future investment opportunities. INPEX Vision@2022 also outlines plans for further expansion of the Ichthys LNG facility, including the construction of a third LNG train by around 2030, investment in CCS, renewable energy projects and future hydrogen and ammonia opportunities. This investment approach is aligned with the Government’s Powering Australia and
Rewiring the Nation policies to create low carbon energy job opportunities for all Australians. INPEX acknowledges the global challenge of climate change and supports Australia’s updated commitments and intentions made in June 2022 under the Paris Agreement. INPEX has committed to net zero emissions by 2050.

With this in mind, INPEX suggests the Australian Government consider the following key principles to maintain the competitiveness of international investment in Australian LNG projects.

i. Stable and predictable policy settings

INPEX’s Final Investment Decision (FID) in 2012 for the Ichthys LNG Project in Australia, the single
largest overseas investment by a Japanese company, was based on the fundamental economic
principle that the energy prices are determined fairly and transparently in the balance between
supply and demand, and on the premise that Australia is a country with a stable policy
environment, a free market and limited government intervention.

Unprecedented government intervention and fiscal changes such as the introduction of the
Australian Domestic Gas Security Mechanism, the Northern Oil and Gas Australia (NOGA) levy, a
cap on east coast gas prices, a Mandatory Code of Conduct and PRRT reforms, raises the
estimation of political risk and will likely discourage the investments needed to reduce energy
prices, and impact Australia's reputation as a country with stable policy settings and low
sovereign risk. The government is “changing the goalposts after the game has started” resulting
in a perceived deterioration in the investment climate.

It is of utmost importance that the Government takes measures to promote the activities needed
to reduce energy prices. In particular, the Government should actively work to attract the
significant infrastructure investment required to expand the supply of natural gas and LNG, which
is essential to both the Indo-Pacific region’s energy security/transition and to Australia’s
economic development, rather than permanent Government and regulatory intervention.

Government can best support our future investment aspirations by delivering consistently clear
decision making and stable and competitive domestic policies that provide a high level of
confidence and lower risk for potential investment over the longer term.

ii. Clarity and certainty in relation to Environment Plan approval processes

Please refer to our response to question 22. iii. Incentives for large-scale abatement projects

The reformed Safeguard Mechanism which commenced on 1 July 2023 introduced strict declining
baselines and zero reservoir CO2 baseline for new gas fields. This imposes significant GHG
liabilities on LNG facility operators and the baseline decline rate is greater than practical
decarbonisation capacity. Associated compliance costs must be born in parallel to the

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Future Gas Strategy – Submission – INPEX

decarbonisation capital expenditure, which deteriorates the competitiveness of Australian LNG
projects.

In order to achieve decarbonisation, significant investment in both the implementation of large-
scale abatement projects using existing technologies such as CCS and switching from on-site
thermal power generation to renewable power import, and the development of further emerging
low-carbon technologies is required. In particular, CCS is essential to achieving Australia’s
emissions reduction targets and is the only feasible technology currently available that can deliver
deep emissions reductions in many industrial processes that are vital to the Australian economy,
such as LNG, mining, steel, cement and chemicals industries.

While the critical role of CCS has been demonstrated in many reports, the policies in place in
Australia today are insufficient to ensure CCS deployment scales up at the rate required. A close
examination of the examples of CCS projects in the US and Europe reveals commonalities and
lessons for the rest of the world and highlights that the CCS investment occurs by creating an
economically viable commercial business case and removing the hard-to-reduce risks (such as
policy and revenue risk, cross-chain risk and storage liability) which private sector has limited
control over. The Australian Government has a major role to play in facilitating fit-for-purpose
CCS business models that help reduce risks and firm-up revenue streams and support early
developers of CCS projects in establishing the CCS industry.

In this regard, in particular through the Infrastructure Investment and Jobs Act and the Inflation
Reduction Act in the US, the US Government provides strong support for emissions reduction
through tax credits and multi-billion-dollar grant programs to facilitate, among other things, CCS
activities and projects. This has created a strong green investment environment in the US, which
has resulted in green investment of at least around US$300 billion to date. This will likely enable
US LNG projects developing associated CCS projects to reduce emissions without increasing the
marginal price of the LNG they are selling.

While Australia is in a position to contribute to, and benefit from, the energy transition, it needs
to recognise that as a country, it already lags far behind the US, EU and others in global
competition. In other words, if Australia is genuinely committed to becoming a 'clean energy
superpower', it must act decisively to attract large-scale foreign investment, which is key to
Australia achieving net zero. INPEX encourages the Australian Government to appropriately
recognise the criticality of CCS in meeting its emissions reduction targets and to learn from
‘international best practice’ regarding CCS. While the CCS industry in Australia is currently
spearheaded by the private sector, the breadth of policy and funding initiatives on offer in the US
and the EU suggests a collaborative approach between the government and private sector is
needed to deliver sufficient financial, fiscal and regulatory certainty and commercial viability to
really accelerate development of CCS projects. It is this collaboration between the government
and private sector that will ultimately unlock Australia's CCS potential.

INPEX considers that it is important that such policy should provide clear support for
decarbonisation across all industries. We note with concern that some support mechanisms
provided by the Government to date, such as the Safeguard Transformation Stream, do not
provide support for the decarbonisation of gas producing facilities that are seeking to expand and
consider that such settings will weigh negatively on investment decisions that would otherwise
provide additional or replacement supply.

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Future Gas Strategy – Submission – INPEX

The response to question 28 further details our view on the key elements that are required for
the Australian Government to ensure CCS deployment scales up at the rate required to meet its
emissions reduction targets.

20. What value do you place on low or net zero emissions LNG production?

As the world aims to transition to a net zero world, LNG buyers in Asia are placing the carbon footprint of LNG supply chains under greater scrutiny. There are growing calls for GHG emissions to be detailed in tenders. LNG buyers in Asia are also showing appetite for the supply of low emissions LNG. In this regard, carbon-neutral (CN) LNG – LNG for which the GHG emissions associated with the upstream production, liquefaction, transportation and combustion of natural gas is measured, certified and offset through the purchase and use of carbon credits – is seen as a catalyst to spur greater carbon commitments, with a growing number of LNG buyers and end-users seeking ways to reduce their carbon footprint.

This is particularly the case for uses beyond the electricity sector, including heat, where gaseous energy itself will need to be decarbonised in the future, but will take time to implement and deploy the technologies necessary to achieve this. In Japan, in response to the end gas users’ demand for carbon neutrality of heat, city gas utilities are expanding the supply of carbon-neutral city gas using regasified and heat-adjusted CN LNG (currently provided by around 60 city gas utilities). In March 2021, fifteen reputable Japanese companies across different sectors launched a group called the ‘CN LNG
Buyers Alliance’, with an aim of spreading the use of CN LNG and increasing its utility value toward the achievement of a sustainable society.

Despite this momentum, there is scepticism over CN LNG. There are at least four major concerns: the scale of emissions per cargo that need to be offset, the quality of emissions accounting, the effectiveness of carbon offsets, and the ultimate environmental benefit of these transactions. Each issue creates a credibility challenge. In November 2021, the International Group of Liquefied Natural
Gas Importers (GIIGNL) launched a comprehensive framework for a consistent industry approach to declaring GHG neutral LNG cargoes. The Framework promotes verified and consistent quantification of GHG emissions across the entire value chain, from extraction of natural gas, liquefaction, shipping, regasification to final consumption. Significantly, it creates a transparent practice to declare GHG neutral cargoes through an independently verified Cargo Statement which sets out both emissions and offsets. Also, INPEX has engaged with Socotec Certification Japan and received its validation for our CN gas calculation and operation system in January 2022, with an aim to further improve the reliability of INPEX’s CN gas marketing and supply in Japan. INPEX will continue to take necessary actions to improve the credibility and integrity of CN LNG/gas and at the same time pursue major abatement projects such as CCS to directly reduce GHG from Ichthys LNG facilities and achieve low emissions LNG production.

Oil and gas regulation in Australia

21. What is the role of offshore acreage releases in the context of consumer demand and emissions targets? What factors should the Australian Government consider when releasing acreage?

Offshore acreage releases are essential to the process of providing access to new exploration acreage and potential resources. The acreage releases form the only mechanism (apart from cash bidding) to

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Future Gas Strategy – Submission – INPEX add new acreage with the potential of new hydrocarbon discoveries. Release of offshore exploration blocks do not influence emission targets.

Other factors to consider when releasing acreage include proximity to existing infrastructure, proximity to customers, size of the release block, minimum work obligations proposed versus cash bidding and constraints on receiving regulatory approvals for operational activities in a timely fashion.
Overlapping GHG and petroleum titles works well for the same titleholders but cause tension if the titleholders are different with potentially competing production/capture strategies. Acreage release areas could also be further focussed in areas of low risk of reservoir CO2 (such as the Gorgon area with over 10 per cent CO2 vs NWS/Rankin area with less than 10 per cent CO2).

22. How could the offshore petroleum regime be improved to meet the objectives of the strategy?

Under the current offshore petroleum regime permit, operators have a period of three years to fulfill the agreed work programme commitments. This process is largely consistent with petroleum legislation globally. However, over the past two years delays in approvals and increasingly onerous requirements around permitting has resulted in over 50 per cent of the exploration period being comprised of waiting on regulator response. This makes it no longer possible to determine the prospectivity of a permit in the three year timeframe. Capital planning is also rendered virtually impossible, making it more difficult for Australian projects competing for capital with activities in more efficiently managed regimes elsewhere in the world.

Improvements and development of the GHG legislation and associated regulations (especially for site plans, MMV: Measurement, Monitoring, and Verification and injection licence) are needed to ensure
CCS projects can be executed in a timely manner to meet the new Safeguard Rules for new gas projects
(new supply). There are significant overlaps between regulatory approvals for GHG (Environment Plan vs Key Greenhouse Gas Operations vs Sea Dumping).

Existing/already discovered gas fields that are currently stranded due to high CO2 content could be monetised by the timely execution of both local and common-use CCS projects. Current legislation, regulations and guidelines need to be modified to allow for swifter CCS approvals. The current legislation and associated guidelines are pushing for <10 per cent risk of migration outside of the title and therefore require significant subsurface data to support the approvals.

Approvals under the OPGGSA

Offshore gas developments are experiencing unprecedented delays and unworkable regulatory requirements following the Federal Court decision in Santos NA Barossa Pty Ltd v Tipakalippa [2022] more than 15 months ago.

Since then, there has been prolonged uncertainty and complexity around the extent of relevant persons identification and consultation required to obtain approval of Environment Plans from the
National Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA) under the
Offshore Petroleum and Greenhouse Gas Storage Act 2006 (OPGGSA). This has resulted in a significant backlog of more than 30 Environment Plans with NOPSEMA awaiting approval, delaying potential oil and gas supply to contracted customers in Asia and Australia, and impacting decommissioning and
CCS projects.

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Future Gas Strategy – Submission – INPEX

The Federal Court’s decision on 28 September 2023 that NOPSEMA invalidly exercised its powers in approving Woodside Energy’s Scarborough Project’s Marine Seismic Survey Environment Plan with conditions relating to ongoing consultation, was a symptom of an unworkable regulatory framework.
On the 2 November 2023, (following action by the Environment Defenders Office) the Federal Court also placed an interim injunction, preventing “any activity” on Santos’ proposed Barossa export pipeline. It will remain in place until the court decides whether to grant a full injunction – highlighting the uncertainty industry faces regarding the current OPGGSA legislation.

INPEX requests that the Government consider urgently amending the OPGGSA legislation and supporting guidance material to better define existing regulations with regard to relevant persons engagement during the development of Environment Plan and impact thresholds/definitions for how impact is defined in relation to a person’s functions, interests or activities. This approach will require the Government to address the streamlining requirements between the OPGGSA and the
Environment Protection and Biodiversity Conservation (EPBC) Act to enable the Australian Minister for Resources to make such amendments through accreditation with the EPBC Act. Following the streamlining amendments, INPEX urgently asks the Commonwealth Government to amend the
OPGGSA regulations with regard to 1) the definition of relevant persons; 2) the definition of required stakeholder consultation jurisdictions based on the direct impact of the proposed activity; 3) consideration of an agreed timeframe for fair and appropriate consultation between industry and external stakeholders, and 4) consideration of revised thresholds that determine how the environment may be affected.

We also ask the Government to consider the impact on the Australian gas industry of legislative changes to other acts such as the introduction of the Nature Positive Act, and its implications on environment approvals under the OPGGSA, particularly regarding the design of other stakeholder engagement standards.

Failure to urgently make amendments will impact on the gas supplies for the Australian domestic market and international LNG markets such as Japan, which rely on Australia as a reliable investment destination and LNG supplier of choice.

Ongoing policy uncertainty will see investment in Australian energy projects diverting to countries that provide more predictable policy settings. The result will be a decline in Australian export income, jobs and economic benefits, particularly in regional Australia.

23. What are the major barriers and opportunities for new supply? How can the Australian
Government prioritise, mitigate or manage these?

The single greatest barrier to supply is the inability to progress projects on a reasonable and predictable timeline. Extremely long approvals periods and complex time-consuming permit applications, result in long development periods (years longer than similar projects elsewhere). This results in Australian based projects being unable to compete for capital on the international market.
The ability to fulfil the minimum work obligation and challenges to acquiring seismic and drilling wells to mature oil and gas prospects and then develop any discovery are currently a major barrier to obtaining new supply. Government should also conduct significant consultation with relevant stakeholders before issuing titles where potential environmental concerns have been identified.

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Future Gas Strategy – Submission – INPEX

24. What are some of the opportunities for gas production in Australia in the medium (to 2035) and long term (to 2050)? How could these necessary developments support decarbonisation consistent with achieving emissions reductions goals?

The hydrocarbon industry is the only industry that has the expertise and capability to develop CO2 sequestration projects. The hydrocarbon industry will not continue to progress these decarbonisation projects in Australia if they are unable to progress development/production projects.

25. How can the Australian Government better communicate and provide more transparency to local communities regarding gas projects?

The Federal Government (led by DISR) should secure funding and work with Northern Territory and
State Governments to educate and inform communities (with industry) on the economic, social and energy security benefits of natural gas for their community.

26. What opportunities exist to improve engagement and consultation processes with industry?

With regard to consultation for NOPSEMA-approved environment plans, the Australian Government should provide greater clarity on stakeholder requirements for consultation for titleholders, with a focus on the area of direct impact.

Geological storage of carbon dioxide

28. How can Australia support the potential for cost-effective, safe and verifiable CCS projects, including for the gas sector, other industries and our region?

As per other statements in this submission, the Australian Government needs to consider a range of financial incentives and mechanisms to encourage the support and development of a decarbonisation industry, particularly CCS, in Australia. The Government should take note of successful international case studies of decarbonisation and energy hubs that have been established with the use of government funding, exploration incentive models and tax credits to help establish viable CCS precincts in Australia.

Examples include the introduction of the Inflation Reduction Act in the US and the Norwegian
Government’s upfront $4 billion funding incentivisation support for the establishment of the Longship
CCS Hub in Norway. The Northern Lights project in Norway has identified over 90 suitable capture sites, and there is already interest from industrial sites in eight countries, in sectors including steel, biomass and hydrogen. Four of these sites – a hydrogen refinery in Finland, hydrogen and chemicals in Belgium, a cement plant in France and a biomass with CCS plant in Sweden – have received investment from the EU’s Innovation Fund to support large-scale capture of CO2.

Northern Lights is also exploring the potential of locating direct air capture facilities and other industrial plants in the area to make use of the storage infrastructure. The project’s construction phase will bring between 1,500 and 3,000 jobs, with around 170 jobs created directly during operation, alongside many thousands of jobs created and safeguarded in industries that decarbonise through carbon, capture, utilisation, and storage (CCUS) or participate in carbon removals.

INPEX recognises that irrespective of the supportive role that both gas and LNG can play in domestic and global decarbonisation and in addressing the energy trilemma, its continued relevance will

17
Future Gas Strategy – Submission – INPEX ultimately hinge on the capacity to decarbonise both its production and usage. CCS is a key technology that is identified across multiple scenarios as being essential to the achievement of climate targets and has particular importance in application to gas. The IEA’s latest World Energy Outlook notes that a net zero energy system cannot rely only on renewable power but must be complemented by technologies to capture CO2.

CCS has the potential to be applied across the gas/LNG value chain. It can be:

• Deployed to decarbonise gas and LNG production, for example in the capture of native
reservoir CO2.
• Applied to the production of hydrogen from natural gas providing low-cost low-carbon
hydrogen.
• Applied to gas-fired power generation to provide low-carbon dispatchable power, for example
through post-combustion capture or oxy-fuel combustion capture.

More broadly, CCS will facilitate the decarbonisation of hard-to-abate industries such as cement and aluminium and through its potential use in delivering negative emissions could be a useful tool to mitigate under-performance against interim emissions reduction targets.

INPEX highlights a report published by the University of Queensland titled ‘Financial Incentives for the
Acceleration of CCS Projects’, which broadly reflects our view of current situation around CCS in
Australia and outlines what is required for the Australian Government to ensure CCS deployment scales up at the rate required to meet Australia’s emissions reduction targets. The following summarises key points from the report:

• While many countries, including Australia, are anticipated to require widespread deployment
of CCS to achieve medium- to long-term emissions reduction, in most instances globally, CCS
applications are currently not commercially viable. In fact, there have been many projects
planned globally which have not proceeded given the current low carbon price, longer term
uncertainty around that price and limited government financial support. There is a significant
gap between the incremental capital and operating costs associated with CCS and the revenue
from transport, storage or utilisation of CO2 that may be achieved by the underlying
installation of CCS facilities. There are limited large-scale opportunities to generate revenue
through providing CO2 transport, storage or utilisation services.
• Resolving the fundamental economic performance and ensuring positive project cash flows
will always remain central to any decision to invest in a long term CCS project. However, there
is considerable uncertainty about future economics. The finance community reasonably views
CCS as high-risk projects and will therefore approach potential CCS projects with caution,
adopting a view that relatively high returns are required to justify any investment. Additional
policy responses are therefore necessary to address the financial gap and provide an economic
business case for investors to act now and invest to ensure that Australia is ready and able to
deploy CCS when needed.
• In the short- to medium-term, it is likely that government financial support will be required
for early mover, commercial scale CCS projects if deployment is to progress at a pace required
to meet Australia’s emissions reduction targets. Transitional government support can be
applied in a number of ways to projects before the technology is able to deploy commercially
without assistance, including:
o Facilitate development of CO2 storage resources in advance of integrated projects
o Lower the amount of capital that needs to be raised by project proponents
o Support the operating-phase cash flows

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Future Gas Strategy – Submission – INPEX

o Mitigate hard-to-reduce risks such as policy risk, cross-chain risk and storage liability
• Following are the examples of potential incentives and support mechanisms that can be
provided by the Government which have the greatest likelihood of mobilising private sector
investment and accelerating the deployment of CCS.
o Storage exploration and development: Capital grants and subsidies, tax credits
o Capital cost reduction: Capital support (such as grants), tax credits
o Operating cost support: CCS certificate, contracts for difference
o Risk mitigation: Low-cost finance, loan guarantees, liability transfer

It is worth noting that achieving necessary scale is one of the key challenges in developing a CCS project.
This challenge has two parts; firstly, establishing the necessary amount of demand for CO2 sequestration to underpin a CCS project, and secondly overcoming the technical, logistical and legal challenges associated with the economic transport of the associated CO2 to the storage location. Policy that supports and provides opportunity for a collaborative approach across industries, across domestic and international boundaries and between private sector and government will be key to overcoming these challenges. Support for and investment in multi-use hub infrastructure is an example of how this might be operationalised.

INPEX supports the commitments made by the Government towards the provision of regulatory and administrative certainty. We consider that further support could be provided through:

• The development of a national CCS strategy that would establish targets for capture and
storage, highlight key industrial sectors that should be targeted, indicate key infrastructure
development required and develop coordination mechanisms both domestically and
regionally. Such a strategy can be delivered as an adjunct to the planned sectoral pathways
given that CCS has the potential to provide decarbonisation capability across multiple sectors.
• The continuation of acreage release with clear guidance with respect to stakeholder
engagement that might be unique to the development of environment plans for CO2 storage
site exploration.

All of the above will reduce uncertainty for first movers and be critical in the development of investable business cases. This should ultimately lead to increased capital flow towards CCS projects as less of this capital will be perceived by investors as risk capital.

Beyond realising domestic decarbonisation opportunities provided by CCS, Australia is uniquely positioned to develop and benefit from the establishment of a world class CCS industry.

The import and export of CO2 is expected to play an important role in meeting net zero targets in the
Indo-Pacific region. There is significant interest in the region for the development of a market for the international export and storage of CO2. A 2022 study by the Global CCS Institute identifies a range of countries in the region with limited domestic CO2 storage potential that are interested in considering the export of CO2 to other countries in the region for storage, including Japan, South Korea, Singapore and the Philippines. The same study identifies Australia as a potentially important CO2 storage “anchor nation”, given its excellent carbon storage potential. The report highlights that engagement with industry in Japan and South Korea identified “that the export of CO2 for storage may be a solution for addressing these nations’ significant emissions in the near term. Further, the Japanese government’s long-term CCS Roadmap considers the need for domestically produced CO2 to be transported overseas for storage.

Australia’s comprehensive regulatory frameworks for CO2 storage ensure any local environmental risks are identified and mitigated effectively. Commonwealth and state CCUS legal and regulatory

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Future Gas Strategy – Submission – INPEX frameworks along with CO2 storage guidelines in the London Protocol and international CCUS standards, provide a comprehensive basis for the effective management and mitigation of environmental and other risks associated with CO2 storage.

INPEX considers that the LNG industry in Australia has excellent potential to progress and support a regional CCS industry. Skills and experience are to a large extent transferrable, and existing trade and transport relationships can be leveraged.

29. How can the Australian Government better communicate and provide more transparency to local communities regarding CCS projects?

The Australian Government should form a CCS communications taskforce with government agencies with expert knowledge of CCS, such as the Geoscience Australia, the Commonwealth Scientific and
Industrial Research Organisation (CSIRO) and the Department of Industry, Science and Resources
(DISR) to deliver an education program and communications campaign across government (federal, state and local), community organisations and schools.

Government could also work with industry associations such as the CO2CRC, Australian Energy
Producers and the Global Carbon Capture and Storage Institute with CCS operators to educate and hold targeted community forums on CCS.

Australia’s gas workforce and LNG facilities

34. Are you able to attract and retain the workforce and skills you need? How will these shift as we transition to net zero emissions?

The gas industry does require specialist skill sets for the required recruitment of exploration, development, operation, and decommissioning personnel. It is quite possible as the broader energy transition progresses, we will no longer see academic qualifications and students moving into the industry. This will mean that existing skilled personnel will become highly sought after with reduced availability.

Newer technologies and opportunities for energy projects will draw talent away from existing gas projects. This combined with the issue (from the first point) means that new talent will be in limited supply.

If gas operators can't diversify and offer career development, increased turnover is likely.

With an experienced worker shortage in the future, personnel with gas experience will be in short supply and as such higher personnel costs will follow.

Oil and gas operators employ a significant number of workers when you consider direct employment and service and supply contractors. Many of these job opportunities are in communities that have limited alternate/developing industry. If there are job losses, the Government must consider alternative investment strategies to maintain jobs and training.

Ongoing investment into known shortage areas will support energy transition. Similar skilled resources are required to construct many projects. Future projects will still require supply chain support. It is critical to avoid a skill shortage and train for sustainable development.

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Future Gas Strategy – Submission – INPEX

For example, in the maritime sector for the LNG industry, there are significant challenges:

• It takes a significant amount of cost and time required to train mariners.
• The current workforce is aging across officers and engineers. If we do not begin training the
available skill pool will reduce as the current workforce retires.
• With the national strategic fleet, existing resource project support and future project support
demands the maritime sector will experience a skill shortage if pro-active steps are not taken.
• Employer/industry and Government support and coordination will be required to solve the
training gap (such as funding, training institutions, training positions on vessels etc).

36. Describe the projects or best practice examples of industry engagement with the local community, as well as the benefits these projects bring to the people and regional economy.

INPEX works closely with key stakeholders and communities in Broome, the broader Kimberley region and in the Northern Territory.

For more than 15 years, INPEX has worked together with communities to provide local employment opportunities, education, and training for people with the potential to play a role in Ichthys LNG, and provision of on-going support for community organisations.

Our goal is to support social and economic development outcomes that will enhance the wellbeing and prosperity of community members. We place great value on building trusted and long-lasting relationships within those communities.

We are committed to delivering long-term energy solutions. By investing in community programs that support social and economic needs, we are proud to help build vibrant, prosperous and resilient communities.

We play an active role in local communities by creating and offering business and local workforce opportunities, training and skills development, educational opportunities and environmental protection and preservation, and by encouraging Australian business participation in Ichthys LNG.

Our approach focuses on collaboration and shared two-way engagement with our business contractors, local industry associations, government authorities, residents, community partners and
Aboriginal and Torres Strait Islander peoples.

Northern Territory

The Northern Territory’s capital, Darwin, is home to INPEX’s onshore LNG processing facilities and support facilities at Bladin Point. National and international attention turned to Australia’s most northern capital city in November 2018 when celebrations, to mark the commencement of Ichthys
LNG production, brought together two prime ministers. The Prime Minister of Japan, His Excellency
Mr Shinzo Abe and former Australian Prime Minister, the Hon. Scott Morrison MP offered their congratulations and support for the geostrategically important project.

Employment and business
An ACIL Allen economic assessment has forecast a potential 600 new jobs a year over the life of Ichthys
LNG. We want to make sure as many as possible go to the Territory. Ichthys LNG is forecast to generate around AUD$ 2.6 billion in tax revenue for the Territory.

21
Future Gas Strategy – Submission – INPEX

Education and Training
More than AUD$ 9 million has been invested in education and training facilities, with potential for people to further their studies or create a successful career in our industry.

Our partnership with Traditional Owners
The formation of the historic Larrakia Ichthys Foundation Trust agreement directly supports Larrakia people for at least 40 years. The INPEX Larrakia Advisory Committee is going strong and will continue throughout the four decades of Ichthys LNG’s operations.

The Kimberley, Western Australia

The town of Broome and the city of Perth form the connection to our significant economic and social contribution to Western Australia. Our office in Perth represents the largest INPEX office globally.
Broome serves as a logistics hub for our offshore Ichthys LNG operations. The remote Aboriginal community of Djarindjin plays a vital role in refuelling helicopters used to transport workers to our offshore Ichthys LNG facilities.

We enjoy strong links with Western Australian communities, identifying four social outcome themes for our community contributions (education and training programs; health and wellbeing initiatives; business capacity building; and programs that aim to connect and empower the community). In
Broome, we contribute directly to the local economy, supporting 70 local businesses. INPEX is a proud member of Broome’s Chamber of Commerce and Broome Visitors’ Centre. We are the biggest customers of Broome Port and Broome International Airport (BIA) where operations personnel transit via the Djarindjin Aboriginal Corporation refuelling facility to the Ichthys LNG offshore operations. BIA is also home to our medevac and search and rescue helicopter, which is available for community use when not required operationally. Our other sponsorships include Broome’s Primary School and North
Primary School, Shinju Matsui, the Taste of Broome and the Chinatown Christmas trails. We work with other sponsors supporting local artists June Djiagween and Herbie Marshall on the Chinatown
Revitalisation Project.

37. How has the oil and gas industry impacted the local economy and employment opportunities in your region?

Please note the ACIL Allen economic and social assessment report and Reconciliation Action Plan attached to this submission addresses this question.

22

The next chapter: Building a stronger Northern Territory

A social and economic impact assessment
Ichthys LNG 2020 - 2030
Contents

About this report 2

Ichthys LNG 3

Economic and social benefits to the Territory (2020-2030) highlights 5

Major economic benefits across the Territory 6

Social impacts and benefits to the Territory 7

Ichthys LNG’s infrastructure legacy 9

Ichthys Explorer:
central processing facility

Ichthys Venturer: Ichthys LNG onshore
floating production, storage processing facilities
and offloading facility

Gas export pipeline

Exploration Production Liquefaction
About this report

INPEX, as operator of Ichthys LNG (the Project), The established and growing presence of Ichthys LNG in
commissioned ACIL Allen to provide an economic the NT is critical to the long-term growth and
impact assessment of the Project’s economic and social development plans of the Northern Territory
contribution to the Northern Territory (NT), from 2020 to Government. The importance of the gas industry to the
2030. Territory economy has been highlighted in numerous
strategy and policy publications including the NT Gas
This report provides a contemporary view of the
Strategy, and in the final report by the Territory
Project’s contribution in the NT as an extension and
Economic Reconstruction Commission.
update to ACIL Allen’s 2016 report The Economic Impact
of the Ichthys LNG Project. A social impact assessment In this report, ACIL Allen has also completed a case
was also undertaken to better understand the positive study on the Centre for National Resilience in Howard
impacts made on the community that are not typically Springs, which has played a significant role in supporting
observed through economic impact studies. the Northern Territory and Commonwealth
Governments’ health response to COVID-19.
Since commencing production in 2018, Ichthys LNG has
made significant contributions through direct and This assessment demonstrates ways in which Ichthys
indirect employment, government taxation payments, LNG contributes to the Territory now and into the future.
social investments and capital and operational
expenditure resulting in local contract work.

Ichthys LNG is a joint venture between INPEX group companies (the Operator), major partner TotalEnergies, and the Australian
subsidiaries of CPC Corporation Taiwan, Tokyo Gas, Osaka Gas, Kansai Electric Power, JERA and Toho Gas.

Transportation Regasification End user

2
INPEX, operator of Ichthys LNG

INPEX, operator of Ichthys LNG, is Japan’s leading energy company and is listed on the Tokyo Stock Exchange.
Its primary business includes research, exploration, development, production and sales of oil, natural gas, other mineral
resources and renewable energy. INPEX is currently engaged in projects in approximately 20 countries worldwide and
employs more than 3,000 people on a consolidated basis. The company’s Australian portfolio includes Ichthys LNG,
plus participating interests in Van Gogh and Coniston, Ravensworth, Prelude FLNG and Bayu-Undan/Darwin LNG.

Ichthys LNG at a glance
• First Japanese-operated liquefied natural gas (LNG) project in the world
• Three mega-projects in one - offshore facilities, gas export pipeline and onshore LNG processing facilities
• World’s largest semi-submersible platform
• Ichthys Field confirmed as Australia’s largest liquid hydrocarbon discovery in more than 50 years
• 890 kilometre gas export pipeline - longest subsea pipeline in the southern hemisphere
• Operational life of 40 years
• 8.9 million tonnes per annum (mtpa) of LNG
• 1.65 mtpa of liquefied petroleum gas (LPG)
• 100,000 barrels of condensate per day at peak

Ichthys LNG in the Territory
INPEX-operated Ichthys LNG has had a transformational impact over the past decade. While the transition of the Project from
in the NT and has helped anchor the region as an emerging gas construction to operations has had temporary side effects, over
province, which is now on the pathway to becoming a the longer term Ichthys LNG will support the growth and
world-class gas production, manufacturing and services hub. development of the NT and help reduce the Territory’s reliance
on federal government funded sectors to drive economic
Ichthys LNG has offered significant service and supply
opportunities for businesses and individuals.
opportunities for local businesses, which are expected to
continue for decades through ongoing operations, Employment opportunities are the critical prerequisite to
maintenance and expansion activity on the Project. sustaining and growing the population in regional economies.
Ichthys LNG provides the economic base to support a range of
The onshore processing facilities are located at Bladin Point,
other industry sectors, thereby creating employment
Darwin, NT. These include two liquefied natural gas (LNG)
opportunities and supporting population growth in the
processing trains to produce LNG, liquefied petroleum gas and
Territory.
condensate processing facilities, storage tanks, a combined
cycle power plant, administrative facilities, utilities and product Since 2012, Ichthys LNG has contributed millions of dollars to
load out jetties. community programs as part of the Project’s commitment to
supporting the community.
The size and scale of Ichthys LNG has had a disproportionate
impact on the growth and development of the NT economy

3
8 4
Economic and social benefits to the Territory
(2020-2030) highlights
The economic impact of Ichthys LNG is assessed in terms of its contribution to Gross Territory Product, wages and
salaries paid to NT workers, full time jobs created, and in terms of the estimated taxation payments to the
Commonwealth and Northern Territory Governments in the most recently completed calendar year 2020, and over the
remainder of the decade to 2030.

ACIL Allen also undertook a social impact analysis to estimate the impact Ichthys LNG is having in the Territory through
the growth in population, use of key social services, and the impact of volunteering hours in the community.

$2.8 $87.1 $7.1 $450 50,862 2,056
billion billion billion million volunteer hours Full Time
on community Equivalent (FTE)
income impact Gross Territory total tax revenue in quantifiable
activities jobs supported
to 2030 Product impact paid to 2030 economic,
provided by the each year.
to 2030 health and
$251 million $649 million Ichthys LNG For every one
$7.9 billion employment workforce in job created in
average per average per
benefits to 2020 Darwin, another
annum average per annum (to
annum Commonwealth Australians from 2.2 jobs are
and Northern the Centre for generated
Territory National across the local
Governments) Resilience in economy over
Howard Springs the study period
since its opening

5
Major economic benefits across the Territory

Building the economy - The economic Employment multiplier - For every output generated by Ichthys LNG was equivalent to one full-time worker employed by Ichthys LNG in the NT, a quarter of the NT economy in 2019-2020. further 2.2 new full-time jobs are created across other
sectors of the economy on average over the study period.
Across the different sectors of the NT economy, the largest benefits are expected to accrue to the transport, It is estimated Ichthys LNG directly employed 550 FTE postal and warehousing ($48.8 million per annum jobs in 2020 – either as INPEX employees or between 2020 and 2030), professional, scientific and contractors. This level of employment and the technical services ($46.2 million per annum) and rental, associated income and expenditure in turn supported a hiring and real estate services ($43 million per annum) further 1,418 FTE jobs indirectly across other industry sectors. sectors in the NT in 2020.

Income boost - The real income boost in the Taxation - The estimated average taxation payable
NT is equivalent to the income benefit from an to the NT Government is worth $34.1 million per additional $2,500 per annum for every full-time worker annum. This level of taxation payments is enough to in the Territory. fund the development of two new primary schools
every year over the 10-year study period.
Over the study period, it is estimated that incomes earned directly and indirectly as a result of Ichthys LNG For the NT, it is estimated payroll tax payments will total will total $2.8 billion, for an average of $251 million per $89.9 million between 2020 and 2030, averaging $8.2 annum. Of this amount, it is estimated Ichthys LNG will million per annum. Other tax payments generated from directly pay $132 million per annum to workers, with a Ichthys LNG include GST ($5.3 million between 2020 further $118 million in wages and salaries earned by and 2030, for an average of $0.5 million per annum) and other workers whose roles are created or supported as a other taxes (including the NT Government stamp duty result of the activity generated by the Project in the NT payment, onshore insurance stamp duty payment and economy. council rates and other NT Government spend), totalling
$219.8 million between 2020 and 2030, for an average
of $20 million per annum.

Ichthys LNG is expected to pay $5.8 billion in company
tax, accounting for 81 per cent of taxes paid to the
Commonwealth and NT Governments by the Project,
over the study period.

Personal income taxes paid as a result of employment
generated by Ichthys LNG forms the next largest source
of taxation from the Project and is expected to deliver
$1.04 billion to the Commonwealth Government between
2020 and 2030, averaging $94.7 million per annum.

6
Social impacts and benefits to the Territory

The social impact analysis demonstrates that the contribution of Ichthys LNG extends beyond jobs and tax revenue.
The Ichthys LNG workforce makes a material and measurable contribution to the social fabric of the NT. Since 2012,
INPEX and the Ichthys joint venture have contributed more than $7 million to community programs in Australia. In
addition, Ichthys LNG has contributed an additional $9 million to construct training and education infrastructure in
Darwin, such as the NT School of Distance Education. In 2020 alone, almost $2 million was invested in a range of
social programs, events and charitable appeals.

A total of 1,832 Territorians are either employed through Ichthys LNG or an immediate family member of a staff
member. The breakdown includes 550 employees and contractors, 678 dependent children and 604 partners or older
dependents. This level of population in turn supports a wide range of additional services in the community from
childcare, primary and secondary schools, health services and provides additional volunteering hours.

Contribution to social services

92 11,395
childcare places primary health enrolments
ACIL Allen estimates 92 childcare places were used by Using age-standardised rates of GP presentations for the
the families of INPEX direct and indirect personnel based NT, ACIL Allen estimates INPEX direct and indirect
on Australian Bureau of Statistics estimates of population personnel generated just under one per cent of total GP
shares at an NT-wide level. This is equivalent to two presentations in 2020. This makes a contribution to the
large daycare centres, or up to 20 family daycare provision of health services by increasing the base of
centres, worth of demand. demand, allowing more providers to establish in the NT.

318 1,006
primary school enrolments new Territorians
ACIL Allen estimates the primary school enrolment Up to an estimated 1,006 individuals moved to the
associated with INPEX direct and indirect personnel is Territory due to job opportunities at Ichthys LNG since
equivalent to 1.3 per cent of total primary school first gas.
enrolments. Put another way, the additional primary
Ichthys LNG has provided the economic opportunities in
school enrolments by Ichthys LNG families accounts for
the Territory to support a growing population.
the equivalent of one and a half average-sized primary
schools. Increased population in turn generates additional
demand for social services that benefit all Territorians.

183
secondary school enrolments
ACIL Allen estimates the secondary school enrolment
associated with INPEX direct and indirect personnel
accounts for 1.1 per cent of total secondary school
enrolments. This is equivalent to the high school student
enrolment of a small standalone high school, or around
two thirds of the high school cohort at a combined
primary/secondary school.
7
Volunteering contribution to the
Territory

In 2020, INPEX and its associated contracting companies contributed an estimated 50,862 volunteer hours, valued at approximately $1 million, to various community causes and organisations. A recent workforce survey highlighted that employees and their families contribute to a range of activities including:

• participation on non-profit organisation boards
(including sports clubs)

• volunteering at schools to support early learning

• working with charities and church groups to provide
support to vulnerable people

• volunteering at community festivals.

8
Ichthys LNG’s infrastructure legacy

This report has helped to quantify the significant economic and social contribution Ichthys LNG has made to the
Northern Territory since INPEX commenced construction of the facilities on Bladin Point nearly a decade ago. Beyond
the numbers quantified through ACIL Allen’s economic and social impact models, there are a range of other ways in
which Ichthys LNG positively impacts on the Northern Territory economy and community.

These impacts can be demonstrated through the range of one-off and ongoing programs and events that are funded
by INPEX and/or Ichthys LNG, as well as infrastructure that has been built to support Ichthys LNG, but which also
benefit the wider community.

Jenkins Road The Centre for National Resilience
Ichthys LNG contributed $8.4 million to the upgrade of in Howard Springs
Jenkins Road. This investment helped deliver a high- The Centre for National Resilience in Howard Springs,
grade road to the local community and alleviated formerly known as Manigurr-ma Village, was originally a
pressure on roads in the Palmerston area during 3,500 bed facility specially constructed to house some
construction of the onshore processing facility at Bladin of the Ichthys LNG onshore construction workforce. It
Point. The project was completed in 2012, with the was built at a cost of $600 million and officially opened
contracts for the two-stage upgrade awarded to local in 2013. On completion of the Project’s construction,
civil contractors. the village was handed over to the NT Government.

In 2020, as part of the national health response to the
Royal Darwin Hospital helipad COVID-19 pandemic, the Federal and Northern Territory
Governments re-purposed the former accommodation
Ichthys LNG contributed $500,000 to the upgrade of the
village to create the Centre for National Resilience – a
Royal Darwin Hospital (RDH) helipad. The project was
national quarantine facility which has successfully
completed in 2014, with the contract for the upgrade
supported the quarantine of thousands of interstate and
awarded to a local civil contractor. The upgrade
international arrivals.
included improved lighting and a doubling in size of the
helipad. The investment provided a significant boost to The most valuable aspect of the facility is the open-air
RDH’s ability to support critical care in emergency separation from room to room. This eliminates concerns
response situations, including accommodating larger about inadequate ventilation and room air pressure
helicopters and landings 24-hours per day due to the which have contributed to a number of hotel quarantine
night lighting improvements. outbreaks over the past 12 months across Australia.

ACIL Allen has estimated the net economic and social
benefit of this facility to Australia through a benefits
Darwin Harbour dredging assessment. It is estimated the Centre for National
A large dredging program costing approximately Resilience in Howard Springs has created up to 400 jobs
$1 billion was required to provide a safe shipping and generated $450 million in benefits.
channel through Darwin Harbour to Bladin Point to
enable shipments from Ichthys LNG. Many small
packages of work were awarded to local sub-
contractors. The project was completed with minimal
impact to the local environment and community,
underpinned by a comprehensive environmental
management plan and regular community and
stakeholder engagement. One of Australia’s most
extensive marine heritage surveys was completed over
the dredge footprint, resulting in the identification of
over 6,000 individual heritage objects including many
World War II artefacts.
9
Voluntary offset programs
The Ichthys joint venture supports a range of voluntary offset programs facilitating research that aims to improve environment and conservation outcomes in the Northern Territory. Overall investment in the voluntary offset programs has been valued at $91 million and includes some of the following projects:

• Conservation management of dugongs, cetaceans and • Savanna fire management programs in the NT
threatened marine matters of national environmental
• Support for Australian Research Council Linkage
significance in the NT
Projects
• Darwin Harbour integrated marine monitoring and
research program

Larrakia Ichthys LNG Foundation Trust
The Ichthys joint venture established a $24 million Larrakia Ichthys LNG Foundation Trust (LIFT) to provide economic and social benefits for the Larrakia People over the life of the project. LIFT has already started to make a significant contribution to the advancement of the Larrakia through:

• tertiary scholarships and school participation program • a funeral fund

• bus services to enable Larrakia Elders to access • an upskilling program
Country

10
Key assumptions
In undertaking this assessment, the following assumptions have been made:

• The economic impact assessment results are based on the production and expenditure of the Ichthys LNG Project.
• The social impact assessment is based on the operations of INPEX in the Northern Territory.
• The study period is from 2020 to 2030.
• All values are expressed in real dollar terms with a base year of 2020, unless otherwise stated.
• All values are expressed in Australian Dollars ($), as measured against AUD/USD exchange.
• Capital and operational expenditure forecasts have been based on estimates provided by INPEX.
• Production forecasts are based on estimates provided by INPEX.
• Price forecasts have been benchmarked to brent crude oil forecasts provided by INPEX, with an assumed exchange rate of US$0.70.
• Taxation estimates are based on the taxation laws at the time the study was undertaken.
• Company tax estimates reflect the overall economics of Ichthys LNG over the 10 year study period. They do not take into account the specific funding
arrangements for each joint venture partner to the Project or other projects and sole activities they may be a party to. These factors may reduce the
gross company tax payments from Ichthys LNG estimated by ACIL Allen.

Reliance and disclaimer
The professional analysis and advice in this report has been prepared by ACIL Allen for the exclusive use of the party or parties to whom it is addressed (the addressee) and for the purposes specified in it. This report is supplied in good faith and reflects the knowledge, expertise and experience of the consultants involved. The report must not be published, quoted or disseminated to any other party without ACIL Allen’s prior written consent. ACIL Allen accepts no responsibility whatsoever for any loss occasioned by any person acting or refraining from action as a result of reliance on the report, other than the addressee.

In conducting the analysis in this report ACIL Allen has endeavoured to use what it considers is the best information available at the date of publication, including information supplied by the addressee. ACIL Allen has relied upon the information provided by the addressee and has not sought to verify the accuracy of the information supplied. If the information is subsequently determined to be false, inaccurate or incomplete then it is possible that our observations and conclusions as expressed in this report may change. The passage of time, manifestation of latent conditions or impacts of future events may require further examination of the project and subsequent data analysis, and re-evaluation of the data, findings, observations and conclusions expressed in this report. Unless stated otherwise, ACIL Allen does not warrant the accuracy of any forecast or projection in the report.
Although ACIL Allen exercises reasonable care when making forecasts or projections, factors in the process, such as future market behaviour, are inherently uncertain and cannot be forecast or projected reliably.

This report does not constitute a personal recommendation of ACIL Allen or take into account the particular investment objectives, financial situations, or needs of the addressee in relation to any transaction that the addressee is contemplating. Investors should consider whether the content of this report is suitable for their particular circumstances and, if appropriate, seek their own professional advice and carry out any further necessary investigations before deciding whether or not to proceed with a transaction. ACIL Allen shall not be liable in respect of any claim arising out of the failure of a client investment to perform to the advantage of the client or to the advantage of the client to the degree suggested or assumed in any advice or forecast given by ACIL Allen.

© ACIL Allen 2021

Reconciliation
Action Plan
January 2023 – December 2025
Acknowledgement of Country Artwork description
INPEX is committed to recognising and The central circle symbol represents INPEX’s respecting Aboriginal and Torres Strait Islander resource operations, and the connecting lines peoples whose cultures have existed in Australia represent the energy that is provided from for more than 65,000 years. them. This artwork connects the land and sea
throughout Australia where INPEX works.
In particular, we acknowledge the Larrakia people as the recognised Traditional Owners of The two serpents represent the Creation Spirits the land and waters where Ichthys LNG onshore who created the land formations and facilities are located, in addition to the Whadjuk waterways: blue for water, and red for earth
Nyoongar people on whose lands our Perth and fire.
office is situated. Furthermore, Broome and
Djarindjin are important logistical locations for The connected lines and circles represent the the transition of our offshore workforce, and we many locations where INPEX works around the therefore extend our acknowledgement to the world. These lines celebrate the diversity within
Yawuru, Bardi and Jawi peoples respectively. INPEX and represent our company showing
respect and support for Aboriginal and Torres
INPEX acknowledges the important role Strait Islander peoples within Australia and
Aboriginal and Torres Strait Islander peoples acknowledges their connection to land and sea.
continue to play in the development of our business in Australia and pay our respects to The coloured backgrounds represent different their Elders – past and present. country from Perth, or Nyoongar Country, in the
southwest of Western Australia, to the red earth
of the Kimberley, across to Darwin and Larrakia
Fire, Earth and Sea Country, all of which are connected to the
Saltwater.
Water flows and winds its way to the sea. This is the sacred place of our ancestors. The markings of the sea are derived from an
ancient Japanese motif, Seigaiha, which
Ceremony by firelight keeps us connected to translates to ‘blue ocean wave’. This blue wave this land. brings all locations and cultures together,
through the connection INPEX provides.
Over vast country the Creation Spirit forms the mountains, rivers, escarpments and valleys. We Artwork by Riki Salam and Gilimbaa.
are Saltwater peoples connected to both land and sea.

Travelling through crystal blue waters the Spirit burrows deep within the earth’s surface giving energy and life to all.
Contents
Our vision for reconciliation 5
Our vision for reconciliation
President Director message 6

Reconciliation Australia message 7 Our vision for reconciliation is an Australia where
Aboriginal and Torres Strait Islander peoples thrive
About INPEX 8 through equitable participation in social and economic
Our reconciliation journey 12 development.

Governance 14
We will actively elevate knowledge and appreciation of
Key learnings, challenges Aboriginal and Torres Strait Islander peoples’ rich and achievements 2019-2022 15 cultures across our workforce and through our
Case studies 18
spheres of influence.

2023-2025 actions 25

5
President Director message Reconciliation Australia message
It gives me pleasure to share our Stretch We continue to improve our contracting and On behalf of Reconciliation Australia, I This Stretch RAP continues INPEX’s impressive
Reconciliation Action Plan (RAP) 2023-2025. procurement processes to increase Aboriginal congratulate INPEX on its formal commitment trajectory. New initiatives look to develop its
and Torres Strait Islander business to reconciliation, as it implements its third own internal capacities and capabilities for
We commenced our reconciliation journey at engagement. Since 2019, together with our Stretch Reconciliation Action Plan (RAP). advancing reconciliation. INPEX plans to
INPEX Australia a decade ago and I take great contractors, we have engaged 23 Aboriginal and increase its Aboriginal and Torres Strait Islander
pride in reflecting on our achievements to date, Torres Strait Islander businesses for work Formed around the pillars of relationships, employment target to five per cent, putting in
while recognising there is yet more we can do. scopes to the value A$ 13 million. respect, and opportunities, the RAP program practices and policies to retain 90 per cent of its
Pleasingly however, we have seen the growth of provides a framework for organisations to First Nations staff. It is also working to educate
INPEX’s contribution to reconciliation in the Since the historic signing of the Larrakia Ichthys contribute to the reconciliation movement. and empower its current staff by creating an
communities where we operate, and the LNG Foundation Trust Agreement in 2018, more Through the creation of this Stretch RAP, INPEX online library to encourage self-learning about
positive impact we maintain within our spheres than 500 Larrakia people from across Australia continues to contribute to the ever-growing First Nations cultures and knowledges. It is
of influence. have benefited from a broad range of programs. community of RAP organisations that have continuing its focus on building agency and
A total of eight programs are in place to taken goodwill and transformed it into action. choice for Aboriginal and Torres Strait Islander
We are proud of the social and economic promote learning opportunities from childhood communities, investing in capacity-building
benefits flowing from the INPEX-operated through to adulthood and support Larrakia INPEX has made considerable strides on its initiatives for two First Nations businesses. This
Ichthys LNG energy development, and we are elderly with access to social and cultural reconciliation journey so far, especially Stretch RAP and these new projects show INPEX
deeply committed to the INPEX RAP program. activities and maintaining their gardens. leveraging its reach and resources to support looking for innovative and considered ways that
Aboriginal and Torres Strait Islander self- it can further embed and expand reconciliation
The successful delivery of our previous five Across the coming three years, we will continue determination. The landmark Savanna Fire into its work.
RAPs, and in particular the outcomes of our to advance INPEX’s reconciliation efforts by Management program – funded by INPEX-
Stretch RAP 2019-2022, demonstrates the focusing on providing direct and indirect operated Ichthys LNG – has worked to provide On behalf of Reconciliation Australia, I
cultural change and maturity within our employment and development opportunities to tangible benefits to remote communities commend INPEX on this Stretch RAP and look
organisation. Aboriginal and Torres Strait Islander peoples, through sustainable employment, training and forward to following its ongoing reconciliation
enhancing business engagement practices and business opportunities, aiding efforts to steward journey.
Along with our INPEX RAP Steering Committee, further building on our internal cultural land through cultural practices and in turn
I remain driven by the opportunities ahead and competencies. improving environmental outcomes.
excited about continuing our reconciliation
journey through this Stretch RAP 2023-2025. We look forward to continuing to work in In 2022 INPEX started a program for the Karen Mundine
partnership with First Australians, Reconciliation conservation management of dugongs, cetacea Chief Executive Officer
Our 2019-2022 Stretch RAP made positive Australia and other RAP organisations, as and threatened marine matters of national Reconciliation Australia
progress in attracting high-calibre Aboriginal together we influence and advance environmental significance in the Top End, using
and Torres Strait Islander peoples to INPEX, reconciliation efforts across Australia. Aboriginal Rangers to identify and design
primarily through the successful implementation programs to support their land and sea
of our Solid Pathways Program (SPP). We now priorities. These initiatives, among others, show
have 49 Aboriginal and Torres Strait Islander Tetsu Murayama INPEX using its position to direct crucial agency
employees working with us at INPEX which President Director, Australia and control to Aboriginal and Torres Strait
constitutes 4.4 per cent of our overall workforce INPEX Islander communities to manage and care for
(1110), in addition to approximately 100 their Country – an essential part of self-
Aboriginal and Torres Strait Islander peoples determination.
engaged through our contractors.

6 7
TIMOR-LESTE

Darwin LNG
About INPEX • Santos-operated (INPEX TIMOR SEA
interest 11.378 per cent)
INPEX CORPORATION is Japan’s INPEX in Australia • In production since 2006
• Annual LNG capacity of up to
flagship energy company, Our company has been an active INPEX activities 3.7 mtpa. Average of one
cargo per week
headquartered in Tokyo. Listed on the member of the Australian business
Tokyo Stock Exchange, our company community since 1986.
in Australia Darwin
is involved in energy projects across Through the INPEX-operated Ichthys
multiple continents, including Ichthys LNG energy development, we are
LNG in Australia as Operator. proudly contributing to positive
outcomes in Australia – via jobs, Prelude FLNG
• Shell-operated (INPEX
As a socially responsible energy training and social and economic interest 17.5 per cent)
company, INPEX is focused on benefits. • In production since 2018
developing, producing and delivering • 3.6 mtpa of LNG, 1.3 mtpa
of condensate and 0.4 mtpa
energy in a sustainable way – and our Our corporate offices in Perth and of LPG capacity Broome
business activities are guided by our Darwin support our field-based INDIAN OCEAN NORTHERN
commitment to comprehensive production teams off the Kimberley TERRITORY

environmental, social and governance Coast of Western Australia and
frameworks. onshore near Darwin, Northern Ichthys LNG
Territory. Our Australian workforce • INPEX-operated (66.245 per cent)
We are deeply committed to totals 1110 across the three sites and • In production since 2018 WESTERN AUSTRALIA

sustainably meeting the world’s Aboriginal and Torres Strait Islander • 9.3 million tonnes per annum Exmouth
(mtpa) of LNG by 2024, 1.65
growing demand for affordable, secure peoples account for 4.4 per cent, or 49 mtpa of LPG and more than
100,000 barrels of condensate
and clean energy. people, of our overall workforce. per day at peak

We plan to invest in five net-zero Ichthys LNG has enabled us to build a
businesses globally by 2030 towards strong foundation here in Australia – a
the realisation of a net-zero carbon business of highly skilled and capable
society by 2050. people from which to expand into our
Van Gogh
future energy capabilities. • Santos-operated (INPEX
By making our energy business interest 47.499 per cent)
cleaner, we aim to provide a stable The recently formed INPEX New Energy • In production since 2010

supply of diverse and clean energy Business Australia (NEBA) has been
sources, with a focus on hydrogen/ established to pursue low-carbon energy
ammonia, carbon capture and opportunities in Australia and support Ravensworth
storage, renewable energy, carbon INPEX’s commitment to a net-zero • BHP-operated (INPEX
recycling and forest conservation. carbon future. interest 28.5 per cent)
• In production since 2010

In addition to Ichthys LNG, our
Australian energy portfolio includes
participating interests in Prelude FLNG,
Darwin LNG, Van Gogh and
More information about INPEX’s Australian projects is Ravensworth.
available at: http://www.inpex.com.au/projects 9
Our values

Our INPEX values form the foundation of our diverse culture, guiding our
actions and our relationships with one another, our customers and the
communities in which we work.

Our values represent our shared understanding of the behaviours we strive to
demonstrate in the way we work.

Safety
Anzen Dai Ichi – Safety Number One – is the way we think, act and promote
safety at INPEX that forms the core of a strong HSE culture.

Integrity
We are ethical, honest and trustworthy in our business relationships and
professional and respectful in our conduct at all times.

Diversity
We proactively embrace our individual differences which are central to who we
are at INPEX and what makes a unique and welcoming workplace environment.

Ingenuity
We embrace initiative and innovative problem-solving at every level of INPEX
and celebrate our successes.

Collaboration
We rely on unity and team spirit to build strong, professional working
relationships within INPEX and in the diverse communities in which we operate.

Our values guide our actions and our relationships – and our people help support society’s growing need for secure, affordable and clean energy. 11
Our reconciliation journey
INPEX’s earliest engagement with Aboriginal and Torres Strait Building on the delivery of the Through our third RAP (second Our second Stretch RAP (2019-2022) helped us to further advance our commitment in increasing meaningful engagement and provide
Islander peoples commenced in 2005 through discussions inaugural RAP, we launched our Innovate) delivered in 2015, we social and economic opportunities for Aboriginal and Torres Strait Islander communities through our business. We made considerable with Kimberley-based Traditional Owner groups while second RAP (first Innovate) in 2014. launched significant community progress in increasing direct employment opportunities.
exploring a suitable site for the Ichthys LNG development. As the Ichthys LNG Project reached partnerships, progressed our efforts
its 50 per cent construction to become a successful employer of Over the three years, we broadened our Steering Committee to include representatives from Contracts and Procurement and Health, Safety
completion milestone mid-year, the Aboriginal and Torres Strait Islander and Environment (HSE) areas of the business to fully realise opportunities for Aboriginal and Torres Strait Islander employment and
RAP focused on sharing the benefits peoples and provided ongoing business procurement; and to capture positive environment-related initiatives under the RAP.
of the Project with Aboriginal and business and employment
Torres Strait Islander peoples. opportunities as the Ichthys LNG During 2020 and 2021, INPEX undertook a RAP Engagement Survey with its workforce, seeking feedback in the key areas
Employment, training and business Project moved towards peak of awareness of RAP, Aboriginal and Torres Strait Islander events and cultural training. The survey results provided
engagement strategies were construction. valuable information about how our employees were engaged, whether they found value in those activities and their
2005 developed and implemented to desire to learn more. The feedback has been considered in the development of our Stretch RAP 2023-2025.
maximise the opportunities.
INPEX also regularly engages with key government, industry and community stakeholders including Aboriginal and
Torres Strait Islander stakeholders and continues to seek feedback on our RAP and progress against the
2013 commitments.

2015 Throughout 2022, various internal workshops and meetings were conducted with representatives across the
business to develop our new RAP actions and deliverables. This included Human Resources, Contracts and
2014 Procurement, Industrial Relations, Operations (onshore and offshore), Corporate Social Responsibility and
In 2013, we implemented our inaugural Reflect HSE. We also worked with an Aboriginal owned and operated business to design the RAP document. The RAP
RAP with the support of external Aboriginal and Working Group and the RAP Steering Committee were supportive throughout the RAP development and
Torres Strait Islander advisors representing the provided valuable input in developing stretch targets.
Northern Territory, Kimberley and Nyoongar communities. The cornerstone of our RAP was to ensure
2016
INPEX provides a multi-generational contribution to Aboriginal and Torres Strait Islander peoples in these areas of our operations, in particular through INPEX-operated Ichthys LNG.
In 2016, INPEX developed its first multi-year Stretch RAP (2016-2018),
During this period, we implemented our first Aboriginal cultural setting greater goals to make further progress towards reconciliation. INPEX awareness training programs in Perth and Darwin to create continued to support organisations in delivering educational and internal awareness of Aboriginal and Torres Strait Islander development programs to support the next generation of Aboriginal and cultures. The construction of Ichthys LNG onshore processing Torres Strait Islander peoples. RAP progress and achievements were broadly facilities provided employment and training opportunities to
Aboriginal and Torres Strait Islander peoples. Cultural heritage
and regularly communicated to INPEX personnel, contractors and Aboriginal
and Torres Strait Islander communities through various publications and
2019 2023 management was a high priority for INPEX during the communication channels.
With our third Stretch and sixth construction activities in Darwin and we engaged Larrakia
RAP overall, we are excited to cultural knowledge holders in heritage surveys during this Throughout the construction of Ichthys LNG, more than 1,470 Aboriginal
continue our reconciliation journey.
period. Main meeting rooms in our Perth office were named in and Torres Strait Islander peoples were engaged. More than 60 majority-
Nyoongar language and this was later mirrored at our onshore owned and controlled Aboriginal and Torres Strait Islander businesses were operations buildings in Darwin with Larrakia names. also engaged to deliver scopes of work to the value of over A$ 170 million.

12 13
Governance Key learnings, challenges and achievements 2019-2022
INPEX’s RAP is governed by our RAP Steering Committee The RAP Steering Committee and the RAP Working Group meet four INPEX’s achievements and challenges over the course of the last The COVID-19 pandemic also had significant impacts on the RAP composed of INPEX Australia’s leaders from across the business. times a year. Working Group meetings are scheduled two weeks Stretch RAP 2019-2022 will continue to inform our reconciliation target of increasing our direct Aboriginal employment and the
The Steering Committee provides strategic directions on RAP-related prior to Steering Committee meetings to consolidate reports to the efforts into the future. implementation of our Solid Pathways Program (SPP). The matters and endorses the RAP actions and deliverables. Members Steering Committee, receive feedback and to coordinate any pandemic and the associated low oil price have slowed down hold one another and the RAP Working Group accountable for the scheduled events. Key learnings: general recruitment activities which resulted in us not meeting our successful implementation of the deliverables. Between 2019-2022, an increased focus was placed on our target to retain 10 SPP roles in 2020 and was starting to impact on
RAP Steering Committee members: leadership teams to play more active roles in promoting Aboriginal our employment target of 36 by the end of the Stretch RAP
The RAP Working Group is made up of employees from business • President Director Australia and Torres Strait Islander initiatives within and outside the workplace. 2019-2022. In early 2021, the RAP Steering Committee agreed to units with responsibilities for actions and deliverables and have a • Senior Vice President Corporate RAP Steering Committee and Working Group memberships were expedite these efforts by increasing the yearly SPP commitment to responsibility to provide updates of RAP progress to the RAP • Executive Vice President Operations updated to better reflect representatives from the relevant business 15 roles which supported INPEX in increasing its Aboriginal and
Steering Committee. All Aboriginal and Torres Strait Islander • Vice President Corporate – RAP champion units responsible in implementing RAP deliverables. This helped the Torres Strait Islander employees to 49 by end of 2022. Following employees are encouraged to participate in the RAP Working Group. • Vice President Operations – RAP champion RAP Steering Committee and the Working Group have better visibility this significant increase in direct Aboriginal and Torres Strait
Five of the current 15 RAP Working Group members are Aboriginal • Vice President People & Collaboration over the progress of RAP deliverables and resulted in greater Islander employees, under the next phase of the RAP INPEX will and Torres Strait Islander employees. • Vice President HSEQ, Risk & Assurance engagement and broader understanding of the RAP actions and focus on retaining and developing these employees.
• Vice President Supply Chain deliverables across the business. The Steering Committee also
• Vice President New Energy Business agreed to increase meeting frequency from bi-annually to quarterly
• Deputy Vice President Operations to reflect the importance of closely monitoring the RAP progress. The
• General Manager Corporate Affairs – Chair RAP Steering Committee and the Working Group were actively
• Specialist Aboriginal Affairs Consultant involved in the development of our Stretch RAP 2023-2025
identifying and developing key actions and deliverables from their
RAP Working Group members: areas of responsibilities. This has contributed to creating greater
• Manager Corporate Social Responsibility – Chair ownerships within their teams.
• Aboriginal Affairs Advisors
• Senior Human Resources (HR) Advisor – Diversity and Inclusion The COVID-19 pandemic heavily impacted our activities from
• HR Business Partner – Aboriginal and Torres Strait Islander 2020-2022 and required INPEX to reconsider the manner in which
• Principal Corporate Affairs Advisor – Northern Territory key programs were implemented. For instance, our Aboriginal cultural
• Corporate Coordination Officers awareness training was delivered through a condensed online version
• Communications Advisor in Perth during the impacted period. With COVID-19 restrictions
• Lead Commercial Services being lifted over time, the face-to-face delivery of Aboriginal cultural
• Category Principal – Contract and Temporary Labour awareness training was reintroduced in Darwin and Perth in 2022.
• Environmental Support Team Lead INPEX also continued to explore alternative delivery mediums, such
• Onshore Implementation Manager as short videos, interviews and other online content to provide the
• Supply Chain Sustainability Principal cultural learning opportunities across our workforce. Feedback
• Senior Industrial Relations Advisor provided through our RAP Engagement Survey in 2021 indicated our
• Finance Business Partner workforce was interested in experiencing further cultural awareness
• Operations Support Manager activities. This resulted in INPEX trialling a Perth-based cultural
immersion in late 2021. This included new deliverables to conduct a
review of our workforce cultural learning needs, with findings to
RAP Working Group members during a cultural immersion tour on consider further cultural learning under the RAP 2023-2025. 2022 Darwin NAIDOC Male Elder of the Year, Uncle Halpin Hart
Whadjuk Nyoongar Country with INPEX General Manager Onshore, Dave Dann
Key achievements: • Delivered RAP engagement surveys across our workforce in 2021
and 2022. The survey feedback showed a high level of support
• Enhancing INPEX’s profile as an employer of choice for Aboriginal • Engaging an average of approximately 100 Aboriginal and Torres and awareness of the INPEX RAP among our employees. Many
and Torres Strait Islander peoples, with increased Aboriginal and Strait Islander peoples through our contractors, exceeding the also reported they were unaware of our RAP progress, and this
Torres Strait Islander direct employees to 49, exceeding our RAP target of an average 60 each year. This is achieved through has resulted in improvements communicating our internal RAP
commitment of 36. working closely with contractors providing opportunities for quarterly activities. The delivery of cultural awareness training
Aboriginal and Torres Strait Islander peoples in alignment with was seen as valuable and many were keen for additional courses
• Strengthening our SPP with 17 participants currently undertaking our own reconciliation journey. Some individuals who gained and immersion activities. Our 2023-2025 RAP will include a
the program. Six participants have successfully transitioned into experience working on our facilities through our contractors are review of our workforce cultural learning needs and consideration
ongoing employment with INPEX after successfully completing transitioning to ongoing direct roles with INPEX. of further cultural learning opportunities.
the SPP.
• Continual improvement of our contracting and procurement
• Providing employment opportunities for Aboriginal and Torres practices enabling INPEX and our contractors to engage 23
Strait Islander peoples in the areas we operate. This includes 12 Aboriginal and Torres Strait Islander-owned and operated
Larrakia people employed by INPEX or our contractors at the businesses for work scopes to the value of over A$ 13 million,
Ichthys LNG onshore processing facilities in Darwin and an exceeding our deliverable of 12 businesses with a total spend of
increase in the number of Aboriginal and Torres Strait Islander A$ 1 million over the RAP period of 2019-2022.
individuals, including Kimberley locals, employed at our two
Ichthys LNG offshore processing facilities.

Solid Pathways Participants at the Ichthys LNG onshore
processing facilities

• Increased employee engagement through National Reconciliation
Week and NAIDOC activities across all locations including our
offshore facilities. A greater focus on collaboration and support
has helped engage our workforce on the two Ichthys LNG
offshore facilities which participated in these events for the first
time in 2021. Activities included information sharing at pre-start
meetings and Aboriginal-themed meals and this has helped
create a more inclusive environment in providing a sense of
belonging and pride for the Aboriginal and Torres Strait Islander
employees who took part in the celebrations.
National Reconciliation Week 2022 activities on Ichthys
Walk for Reconciliation 2022 through Kings Park on Whadjuk Nyoongar Country. Photo taken in front of 'Gija Jumula' the giant boab tree LNG offshore facilities
gifted from the Kimberley Region of Western Australia.
Case Study 1: Solid Pathways Program success Case Study 2: Protecting marine species with Aboriginal Rangers
Larrakia man, Riley Alley has enjoyed a long association with Ichthys “Riley was rostered for his first shift in early March 2022, allowing As a part of the environmental offset commitment from Darwin, Darwin Harbour around to Cox
LNG commencing a school-based electrical pre-apprenticeship him a further 22 months to develop his newly obtained skills through for Ichthys LNG, the A$ 24 million program for the Peninsula, Adelaide River, Finniss River and down to through a partnership between Group Training Northern Territory on-the-job experience under the SPP. conservation management of dugongs, cetaceans Manton Dam in the Northern Territory.
(GTNT) and Ichthys LNG construction contractor JKC in 2014. At the and threatened marine matters of national conclusion of his pre-apprenticeship and secondary studies at “I’m optimistic, as Riley’s success showcases a pathway for local environmental significance (MNES) in the Top End Ben said receiving the grant money has meant the
Casuarina Senior College, Riley was granted a full apprenticeship Larrakia electricians to potentially become Instrument Electrical commenced in 2022. Larrakia Rangers have been able to bring their local with Kentz, the electrical and instrumentation contractor during Technicians at INPEX,” Todd said. knowledge and take more of a lead for some of the construction of the Ichthys LNG onshore processing facilities in This program is managed by the Northern Territory conservation management projects they work on.
Darwin. Government (NTG) and will be delivered over 22
years with the following two objectives: “For the first time we can lead projects that Larrakia
Four years after his electrical apprenticeship journey began, Riley want to do, rather than working with external earned the title of qualified tradesperson, completing all • implementing management actions that enhance organisations using their methodology, we can use competencies of Certificate III in Electrotechnology Electrician. the conservation of dugongs, cetaceans and our local knowledge, ideas and methods to
threatened MNES and their habitat determine how and when data should be collected,”
Fast forward to February 2022 and Riley re-established his • enhancing and maintaining the capacity of Ben said.
association with Ichthys LNG, this time through INPEX’s Solid Aboriginal Ranger groups to deliver these
Pathways Program (SPP). management actions. To date, eight grants have been awarded to support
eight ranger groups (Larrakia, Kenbi, Tiwi, Mardbalk,
During Riley’s SPP interview he impressed the panel by INPEX and the Northern Territory Department of Li-Anthawirriyrra, Yirralka, Gunmurr Marthakal and demonstrating his technical ability and displaying key behaviours Environment, Parks and Water Security worked Garngi Rangers) in the Top End. Four of these were valued at INPEX. Riley was encouraged to complete a Certificate III collaboratively for more than 12 months and for conservation projects, with the remaining grants in Instrumentation and undertake other supporting competencies to identified the successful NTG Aboriginal Ranger for capital items (e.g. equipment) for conservation be able to work as an Instrument Electrical Technician. Grants Program (ARGP) as the best framework to activities.
deliver this latest offset program. The ARGP is
“I am enjoying my role on the Ichthys LNG plant, as well as working outcomes focused and allows Aboriginal Rangers to This includes a successful three-year grant with my team and hope to be successful to get a full-time position identify and design programs to suit their Land and application for the Larrakia Rangers Darwin Harbour with INPEX in the future. Sea Country priorities. Biodiversity Project. This project has already seen
the commencement of monthly shore bird surveys at
“I recommend Aboriginal and Torres Strait Islander peoples should Commonwealth government conditions state which Shoal Bay and Lee Point, as well as daily patrols for apply for future Solid Pathway Program roles that suit their species are eligible for funding under the program. nesting flatback turtles at Casuarina Beach – with backgrounds,” Riley said. This includes a subset of species such as dugong, one hatchling event already reported.
cetaceans (dolphins and whales), threatened marine
Todd Prest, INPEX Onshore Planning Team Lead, said Riley’s MNES including marine turtles, green and freshwater In eastern Arnhem Land, a new barge mooring achievements show what’s possible with personal determination and sawfish etc and associated habitat. system, all-terrain vehicles and trailers have been a supportive working environment. ordered so Gunmurr Marthakal Rangers can access
Larrakia Ranger Manager Ben Smith said the funding remote areas of their Homelands and safely collect
“Through his dedication and proactive approach to training, Riley
and the grants program was a game changer for the marine debris, which can impact marine fauna such successfully attained his Certificate III in only two months, which is
Larrakia Rangers, who cover Sea and Land Country as turtles.
a great achievement. Solid Pathways Participant, Riley Alley, at the Ichthys LNG onshore Larrakia Aboriginal Rangers
processing facilities surveying the coastline around
18 Darwin Harbour
Case Study 3: Savanna Fire Management
Aboriginal and Torres Strait Islander peoples have a long tradition In its sixth year of operation, there are five projects registered of burning tropical savanna to reduce bushfire risks. The practice with the Clean Energy Regulator and another two projects that of strategically burning in the early dry season, when fires are are soon to become operational across the Northern Territory.
cooler and more localised, is now also reducing carbon emissions. Despite the ongoing COVID-19 pandemic, the program continued
to make progress with another project becoming operational
A landmark A$ 34 million Savanna Fire Management (SFM) during 2021, with total of 4.2 million hectares of land now funded program funded by INPEX-operated Ichthys LNG commenced in by the SFM.
2017 and is being managed by the Indigenous Land and Sea
Corporation in the Northern Territory. As well as providing tangible The SFM program continues to make a significant contribution to carbon offsets by controlling wildfires, a significant range of other the collective and shared understanding of savanna fire emerging program benefits includes: management and the capacity of Aboriginal organisations to
undertake savanna fire burning in a way that connects the activity
• delivering sustainable employment, training and business to the carbon abatement market.
opportunities for Aboriginal and Torres Strait Islander peoples
in the Northern Territory by creating sustainable, viable carbon
enterprises in remote communities
• empowering remote communities to manage their own Country
through best-practice environmental stewardship to control
wildfires, improve local habitats, reduce erosion and encourage
local biodiversity
• building capacity among local rangers by providing cultural
recognition alongside formal training and work experience
opportunities in fire management and land care
• supporting improved land management while ensuring an
ongoing connection to Country and traditional cultural practice
is maintained.

The program is expected to deliver benefits for up to 18 years, given the security of the long-term funding and best practice governance model which has been adopted.

20 Savanna Fire Management program partners analysing fire history over project areas
Case Study 4: Larrakia Ichthys LNG Foundation Trust
Established in 2018, the Larrakia Ichthys LNG Foundation Trust Jorja Costello used LIFT scholarship funds to assist her through three netball and barefoot bowls; beach and lawn picnics; visits to
(LIFT) was the first such initiative in Australia signed outside of years of her Bachelor of Laws degree. colleges, primary schools and childcare centres for interactions and
Native Title legislation between Traditional Owners and an operating “Being a full-time law student and working part-time, the role modelling for the younger generation and arts and crafts.
production company. This landmark agreement between the Ichthys scholarship has been a big help with the cost of living,” Jorja said. The bus is also used to take Larrakia elderly to collect traditional
Joint Venture and the Larrakia people in Darwin, has resulted in an foods such as longbums and cockles. Additionally, the bus is used
A$ 24 million commitment to benefit the Larrakia community over “This has been a great opportunity and I encourage those eligible to
apply.” on different days by women only for women’s business and men the operational life of Ichthys LNG. only for men’s business.
The INPEX Larrakia Advisory Committee (Committee) assesses The Aged Care Services bus has proved to be very popular with
elderly Larrakia. Larrakia Nation Aboriginal Corporation administer Another benefit of the bus is the employment of a Larrakia person submissions for programs to be funded through the LIFT. Along with to drive the bus. Since arriving in late 2020, the bus has been used independent Larrakia community members, the Committee includes the bus services which has enhanced their Aged Care programs.
extensively with up to 468 trips each quarter.
representation from the Larrakia Development Corporation, Larrakia The bus is put to good use transporting the elderly to a range of
Nation Aboriginal Corporation and INPEX. activities, including visits to museums, art galleries and day trips to For information about LIFT-funded programs refer to: https://
Adelaide River and Batchelor. Other activities include sports such as www.inpex.com.au/sustainability/aboriginal-affairs/larrakia-ichthys-
The Committee’s vision for the LIFT is “to educate and empower the lng-foundation-trust-lift/ next generation of Larrakia whilst supporting those most in need”.
Key priorities for meeting this vision is to support education and aged care, with education being one of the first targets for funding through the LIFT.
There are currently four programs in place to promote learning opportunities from childhood through to adulthood. Administered by the Larrakia Development Corporation, the Tertiary Scholarship
Program has been growing in popularity since its inception, offering scholarships to Larrakia students completing a Bachelor degree (or higher), a Diploma or a Certificate course.
To date, 37 scholarships have been awarded, including one towards a Master’s degree and two towards PhDs.
Josh Cubillo is the first PhD student to receive a scholarship through the LIFT. The scholarship allowed Josh to purchase equipment to provide him with the flexibility to work from home in Darwin during lockdown periods.
With a young family of three children, Josh is looking to the future of education and hopes to change the system to diversify the way in which education is delivered so that it is inclusive of many knowledge systems.
“I am very grateful for this opportunity and the opportunity the LIFT is giving for more and more Larrakia to achieve goals in education,”
Josh said. LIFT scholarship fund recipient, Jorja Costello, with her Bachelor
of Laws degree
22 The Aged Care Services bus is used by elderly Larrakia for transport to a range of services
Relationships
As a culturally diverse organisation operating in Australia, INPEX understands relationships are central to reconciliation. We are
committed to forming and maintaining trusting, mutually beneficial relationships with Aboriginal and Torres Strait Islander
communities on whose land and waters we operate. We will encourage and support our workforce to develop the knowledge and
understanding necessary to facilitate the continuation of positive relationships and use our influence to make positive change to
support aspirations of Aboriginal and Torres Strait Islander communities.

Focus area: Collaboration: We rely on unity and team spirit to build strong professional working relationships within INPEX, as well
as within the diverse communities in which we operate.

Relationships
Action Deliverable Timeline Responsibility
1. Establish and strengthen • Engage with local Aboriginal and Torres Strait Islander December 2023, Manager Corporate
mutually beneficial stakeholders and organisations where we operate to 2024, 2025 Social Responsibility
relationships with continuously improve guiding principles for engagement
Aboriginal and Torres Strait
Islander stakeholders and • Regularly engage with Aboriginal and Torres Strait Islander April, October
organisations
stakeholders in the Northern Territory and the Kimberley to 2023, 2024, 2025
share information about business activities and
opportunities

• Engage with the INPEX Larrakia Advisory Committee to seek March, June,
guidance on opportunities for Larrakia people September,
December 2023,
2024, 2025
• Review, update and implement the Aboriginal and Torres February 2023,
Strait Islander Stakeholder Engagement Plan to work with 2024, 2025
Aboriginal and Torres Strait Islander stakeholders in the
areas of our operations

• Undertake a community perception survey each year to December 2023,
seek feedback from communities including key Aboriginal 2024, 2025
and Torres Strait Islander stakeholders on INPEX activities
and effectiveness of engagement

• Continue to maintain a minimum of four formal two-way December 2023,
partnerships with Aboriginal and Torres Strait Islander 2024, 2025
communities or organisations in areas of our operations

Flag raising ceremony as part of NAIDOC Week 2022 celebrations on Larrakia Country 25
Relationships Relationships
Action Deliverable Timeline Responsibility Action Deliverable Timeline Responsibility
2. Build relationships through • Circulate Reconciliation Australia’s NRW resources and 27 May-3 June Manager Corporate • Facilitate two workshops a year with a minimum of four May and Vice President People
celebrating National reconciliation materials to all staff 2023, 2024, 2025 Social Responsibility contractors in each workshop to share success stories, November 2023, and Collaboration
Reconciliation Week (NRW) challenges and opportunities for reconciliation 2024, 2025 and General Manager
• RAP Working Group members to participate in a minimum of Vice President People Corporate Affairs
two external NRW events and Collaboration
• Provide opportunities for our community partners to share March and August Manager Corporate
• Encourage and support staff and senior leaders to Vice President People their reconciliation stories with our personnel and through 2023, 2024, 2025 Social Responsibility
participate in two external events to recognise and and Collaboration our network via short videos, interviews and articles two
celebrate NRW times a year
• Organise three internal NRW events, including at least one Manager Corporate • Collaborate with four RAP and other like-minded July and December Manager Corporate
organisation-wide NRW event, each year Social Responsibility organisations to implement ways to advance reconciliation 2023, 2024, 2025 Social Responsibility
• Register all our NRW events on Reconciliation Australia’s • Include no less than 12 RAP-related stories in Gasworks December 2023, Manager Corporate
NRW website (e-newsletter/intranet hub) and on company Yammer 2024, 2025 Social Responsibility
platform (internal social media channel) each year
• Engage two Aboriginal and Torres Strait Islander-owned General Manager
businesses in arranging internal NRW events each year via Corporate Affairs • Produce Deadly Yarns publication twice a year, sharing April and October Manager Corporate
procurement of goods or services positive Aboriginal and Torres Strait Islander engagement 2023, 2024, 2025 Social Responsibility
3. Promote reconciliation March 2023 General Manager stories
• Formally launch our RAP inviting our personnel and external
through our sphere of stakeholders in Perth and Darwin. Distribute a copy of the Corporate Affairs
influence 4. Promote positive race • Continuously improve HR policies and procedures to foster February 2023, Vice President People
RAP to all personnel and external stakeholders relations through anti- diversity and inclusion 2024, 2025 and Collaboration
discrimination strategies
• Provide regular updates on RAP deliverables at key June, December General Manager • Engage with Aboriginal and Torres Strait Islander staff and April 2023, 2024,
management meetings 2023, 2024, 2025 Corporate Affairs Aboriginal and Torres Strait Islander advisors to 2025
Manager Corporate continuously improve our anti-discrimination policy
• Undertake annual RAP engagement survey with all September 2023,
personnel and seek feedback for continuous improvement 2024, 2025 Social Responsibility • Implement and communicate INPEX’s Equal Opportunity, March 2023
General Manager Bullying, Discrimination and Harassment Policy and
• Provide one educational session each quarter for all 31 March, 30 June,
Corporate Affairs Standard across our organisation
personnel to increase awareness and understanding of 30 September, 31
reconciliation including the Uluru Statement from the Heart December 2023, • Provide ongoing educational opportunities for INPEX’s senior June 2023, 2024,
2024, 2025 leaders and managers on the effects of racism 2025

• Publicly communicate our commitment to reconciliation December 2023, General Manager • Senior leaders to publicly support anti-discrimination March 2023, 2024,
2024, 2025 Corporate Affairs campaigns, initiatives or stances against racism 2025

• Attend at least two quarterly RAP Leadership Gatherings a April and October Manager Corporate
year 2023, 2024, 2025 Social Responsibility

• Implement strategies to positively influence our external August 2023, General Manager
stakeholders to drive reconciliation outcomes 2024, 2025 Corporate Affairs

26 27
Respect
Respecting and acknowledging the diversity of Aboriginal and Torres Strait Islander cultures, histories and customs is critical to
meaningful and lasting relationships with internal and external stakeholders. We strive to create an inclusive workplace environment
where people respectfully accept and embrace our cultural diversity. We will continue to improve the cultural capability of our
workforce to deepen their understanding and appreciation of Aboriginal and Torres Strait Islander peoples, through cultural education
and immersion and by celebrating significant events.

Focus area: Diversity: We proactively embrace our individual differences which are central to who we are at INPEX and what makes
a unique and welcoming workplace environment.

Respect
Action Deliverable Timeline Responsibility
5. Increase understanding, • Conduct a review of workforce cultural learning needs December 2023 Vice President People
value and recognition of and Collaboration
Aboriginal and Torres Strait • Use findings of the review to consider and implement December 2024, and General
Islander cultures, histories, further cultural learning in addition to the existing Aboriginal 2025
knowledge and rights Manager Corporate
Cultural Awareness training Affairs
through cultural learning
• Consult local Traditional Owners and Aboriginal and Torres December 2024
Strait Islander advisors on the implementation of a cultural
learning strategy

• Implement and communicate a cultural learning strategy for March 2023, 2024,
our staff 2025

• Commit all RAP Working Group members, HR managers, December 2023,
senior executive group and all new staff to undertake formal 2024, 2025
and structured cultural learning

• All RAP Steering Committee and RAP Working Group December 2024
members to undertake cultural immersion activities

• All maximum-term employees to undertake formal and December 2023, Vice President People
structured face-to-face or online Aboriginal cultural learning. 2024, 2025 and Collaboration
Ninety per cent of staff to complete cultural awareness
training within 12 months of starting employment

6. Increase opportunities for • Develop an online library for personnel to self-learn about December 2024, General Manager
staff to build their cultural Aboriginal and Torres Strait Islander cultures and knowledge 2025 Corporate Affairs
capability through self- e.g. short videos, interviews with Aboriginal and Torres
guided learning
Strait Islander peoples and digital resources

Nyoongar man Gerry Matera, Managing Director WA Indigenous Defence Services speaks at a NAIDOC Week 2022 event on Whadjuk Nyoongar Country 29
Respect
Action Deliverable Timeline Responsibility
• Implement the online library and promote to personnel December 2024, Manager Corporate
2025 Social Responsibility
7. Demonstrate respect to • Increase workforce understanding of the purpose and December 2023, General Manager
Aboriginal and Torres Strait significance behind cultural protocols, including 2024, 2025 Corporate Affairs
Islander peoples by Acknowledgement of Country and Welcome to Country
observing cultural
protocols through sharing of short videos, interviews with Aboriginal
and Torres Strait Islander peoples

• Implement and communicate a cultural protocol document February 2023
(tailored for all local communities in which we operate),
including protocols for Welcome to Country and
Acknowledgement of Country

• Invite a local Traditional Owner or Custodian to provide a April, May, July,
Welcome to Country or other appropriate cultural protocol November 2023,
at six significant events each year 2024, 2025

• Include an Acknowledgement of Country or other April, August,
appropriate protocols at the commencement of important December 2023,
meetings 2024, 2025
• Staff and senior leaders provide an Acknowledgement of May, September
Country or other appropriate protocols at all public events 2023, 2024, 2025
• Display three Acknowledgment of Country plaques in our January 2023
office/s or on our buildings

8. Engage with Aboriginal and • RAP Working Group to participate in two external NAIDOC First week in July Manager Corporate
Torres Strait Islander Week events 2023, 2024, 2025 Social Responsibility
cultures and histories by
celebrating NAIDOC Week • Review HR policies and procedures to remove barriers to June 2023, 2024, Vice President People
staff participating in NAIDOC Week, where practical 2025 and Collaboration

• Hold a minimum of three internal NAIDOC Week events First week in July Manager Corporate
2023, 2024, 2025 Social Responsibility

• Continue to support all staff to participate in two NAIDOC First week in July Manager Corporate
Week events in our local area, where practical 2023, 2024, 2025 Social Responsibility

• In consultation with Aboriginal and Torres Strait Islander
stakeholders, support three external NAIDOC Week events
each year

• Circulate NAIDOC promotional materials and resources to all staff

30 Young Indigenous Women's STEM camp on Larrakia Country
Opportunities
Through its business activities, INPEX is creating and supporting sustainable, multi-generational economic and social outcomes for
Aboriginal and Torres Strait Islander peoples, businesses and communities. We will achieve this through creating targeted
employment and business participation opportunities within our business and with our contractors. We will continue to support
aspirations of Aboriginal and Torres Strait Islander peoples through education of next generation and development initiatives.
Focus area: Integrity: We are ethical, honest and trustworthy in our business relationships and professional and respectful in our
conduct at all times.
Diversity: We proactively embrace our individual differences which are central to who we are at INPEX and what makes a unique
and welcoming workplace environment.
Collaboration: We rely on unity and team spirit to build strong professional working relationships within INPEX and in the diverse
communities in which we operate.
Opportunities
Action Deliverable Timeline Responsibility
9. Improve employment • Engage with Aboriginal and Torres Strait Islander staff to February 2023, Vice President People
outcomes by increasing consult on our recruitment, retention and professional 2024, 2025 and Collaboration
Aboriginal and Torres Strait development strategy
Islander recruitment,
retention and professional • Review and update an Aboriginal and Torres Strait Islander March 2023, 2024, Vice President People
development
recruitment, retention and professional development strategy 2025 and Collaboration

• All Aboriginal and Torres Strait Islander employees to have a February 2023, Vice President People
Development Plan in place 2024, 2025 and Collaboration

• Develop and implement a Cultural Leave Policy December 2023 Vice President People
and Collaboration

• Engage at least two Aboriginal and Torres Strait Islander October 2023, Vice President People
peoples in our early Talent Programs each year. Early talent 2024, 2025 and Collaboration
programs include Vacation Work, Graduate Program, LNG
Operator Traineeships

• Advertise job vacancies to effectively reach Aboriginal and December 2023, Vice President People
Torres Strait Islander stakeholders 2024, 2025 and Collaboration

• Review HR and recruitment procedures and policies to February 2023 Vice President People
remove barriers to Aboriginal and Torres Strait Islander and Collaboration
participation in our workplace

• Aboriginal and Torres Strait Islander employees to be December 2023, Vice President People
supported to take on management and senior level positions 2024, 2025 and Collaboration

Career Expo in Ramingining hosted by Arnhem Land Progress Aboriginal Corporation 33
Opportunities Opportunities
Action Deliverable Timeline Responsibility Action Deliverable Timeline Responsibility
• Increase INPEX’s direct employment of Aboriginal and Torres December 2025 Vice President People 11. Increase Aboriginal and • Include Aboriginal and Torres Strait Islander business January 2023, Vice President
Strait Islander peoples to 60, or five per cent of employees and Collaboration Torres Strait Islander engagement in contracting and procurement category 2024, 2025 Supply Chain
supplier diversity to strategies
• Retain 90 per cent of Aboriginal and Torres Strait Islander December 2023, Vice President People support improved
employees each year 2024, 2025 and Collaboration economic and social • Investigate Supply Nation membership October 2023 Vice President
outcomes Supply Chain
• Continue to fill and maintain 10 Solid Pathways Program December 2023, Vice President People
(SPP) positions each year across the organisation to support 2024, 2025 and Collaboration • Develop and communicate opportunities for procurement of January 2023, Vice President
Aboriginal and Torres Strait Islander employment outcomes. goods and services from Aboriginal and Torres Strait 2024, 2025 Supply Chain
Support transition of SPP participants to ongoing roles Islander-owned businesses to staff

• Provide employment opportunities to an average of 100 Vice President People • Review and update procurement practices to remove January 2023, Vice President
December 2023,
Aboriginal and Torres Strait Islander peoples through and Collaboration barriers to procuring goods and services from Aboriginal 2024, 2024 Supply Chain
2024, 2025
contractors in each year. Ten per cent of this deliverable (10 and Torres Strait Islander-owned businesses
people) will be achieved through traineeships, • Continue to increase the number of Aboriginal and Torres December 2023, Vice President
apprenticeships and/or other developmental opportunities Strait Islander-owned businesses engaged by INPEX or its 2024, 2025 Supply Chain
10. Support Aboriginal and • Continue to provide two INPEX Aboriginal and Torres Strait December 2023, General Manager business partners, with a target of 24 businesses over the
Torres Strait Islander Islander scholarships per year at the University of Western 2024, 2025 Corporate Affairs three-year period
education participation Australia • Continue to increase spend with Aboriginal and Torres Strait December 2023, Vice President
• Support education programs including science, technology, Islander-owned businesses engaged by INPEX or its 2024, 2025 Operations
December 2023, General Manager
engineering and mathematics (STEM) related initiatives 2024, 2025 Corporate Affairs contracting partners, with a target total spend of A$ 15
which include participation of Aboriginal and Torres Strait million over the three-year period
Islander students in Darwin, Broome and Perth through • Train all relevant staff in contracting Aboriginal and Torres December 2023 Vice President
community investment and workforce participation Strait Islander-owned businesses through Supply Nation or Supply Chain and
• Support INPEX employee/contractor engagement in external December 2023, Vice President People an equivalent organisation Vice President People
careers fairs and STEM-related expos which include 2024, 2025 and Collaboration and Collaboration
participation of Aboriginal and Torres Strait Islander • Support a minimum of two local business capacity-building December 2023, General Manager
students, at least twice a year initiatives in the Northern Territory and Western Australia. 2024, 2025 Corporate Affairs
This will be through our community investment and
• Support a minimum of two forums/expos each year to December 2023, Manager Corporate
sponsorships supporting initiatives such as capacity building
promote career pathways into and within the energy 2024, 2025 Social Responsibility
workshops for local Aboriginal and Torres Strait Islander-
industry for Aboriginal and Torres Strait Islander women.
owned businesses and skill up programs for Aboriginal and
This will be through financial sponsorships of events and
Torres Strait Islander peoples
provision of INPEX and our contractors’ Aboriginal and
Torres Strait Islander female personnel as mentors or 12. Support social, cultural • Continue to work with the INPEX Larrakia Advisory December 2023, General Manager
presenters and economic Committee to support programs through the Larrakia 2024, 2025 Corporate Affairs
opportunities for Ichthys LNG Foundation Trust to enable social and economic
• Support a minimum of three health and wellbeing December 2023, General Manager Aboriginal and Torres development opportunities for Larrakia people
community investment programs in Darwin, Broome and 2024, 2025 Corporate Affairs Strait Islander
Perth to contribute to positive physical, mental and cultural communities
outcomes for Aboriginal and Torres Strait Islander peoples

34 35
Opportunities
Action Deliverable Timeline Responsibility Governance
• Continue to implement the Ichthys LNG environmental and December 2023, General Manager
greenhouse gas offsets programs in the Northern Territory 2024, 2025 Corporate Affairs /
to create positive environmental, cultural and economic Vice President HSEQ,
outcomes for Aboriginal and Torres Strait Islander Risk and Assurance / Governance
communities. This will include implementation of the General Manager Action Deliverable Timeline Responsibility
Savanna Fire Management Program, Aboriginal Ranger Commercial
Grants Program and establishment of a Conservation 13. Steering Committee • Meet at least four times a year to drive and monitor RAP March, May, General Manager
oversees RAP implementation August, December Corporate Affairs
Agreement Area development, 2023, 2024, 2025
implementation and
review • Steering Committee supports annual review of RAP and December 2023, RAP Steering
approves additional actions 2024, 2025 Committee
14. Maintain an effective RAP • Maintain Aboriginal and Torres Strait Islander representation December 2023, Manager Corporate
Working Group (RWG) to on the RWG 2024, 2025 Social Responsibility
drive governance of the
RAP • Regularly review a Terms of Reference for the RWG December 2023 Manager Corporate
Social Responsibility
• Meet at least four times a year to implement, review and February, April, Manager Corporate
report progress to the Steering Committee July, November Social Responsibility
2023, 2024, 2025
15. Provide appropriate • Embed resource needs for RAP implementation May 2023, 2024, General Manager
support for effective 2025 Corporate Affairs and
implementation of RAP Vice President People
commitments and Collaboration

• Embed key RAP actions in performance expectations of January 2023, Vice President People
senior management and all staff 2024, 2025 and Collaboration
• Embed appropriate systems and capability to track, January 2023, General Manager
measure and report on RAP commitments 2024, 2025 Corporate Affairs

• Senior leaders role model and visibly demonstrate December 2023, Vice President People
commitment to reconciliation with 75 per cent of functions 2024, 2025 and Collaboration
completing at least one non-mandatory initiative connected
to five dimensions of reconciliation led by a senior leader

• Maintain an internal RAP Champion from senior January 2023, Vice President
management 2024, 2025 Corporate and Vice
President Operations
• Include our RAP as a standing agenda item at senior January 2023, General Manager
management meetings including General Manager forums 2024, 2025 Corporate Affairs

Members of the INPEX Larrakia Advisory Committee 37
Governance
Action Deliverable Timeline Responsibility
16. Build accountability and • Submit a traffic light report to Reconciliation Australia at the January 2026 Manager Corporate
transparency through conclusion of this RAP Social Responsibility
reporting RAP
achievements, challenges • Contact Reconciliation Australia to verify our primary and June 2023, 2024, Aboriginal Affairs
and learnings both secondary contact details are up to date, to ensure we do 2025 Advisor
internally and externally
not miss out on important RAP correspondence

• Contact Reconciliation Australia to request our unique link, 1 August 2023, Aboriginal Affairs
to access the online RAP Impact Measurement 2024, 2025 Advisor
Questionnaire

• Complete and submit the annual RAP Impact Measurement 30 September Manager Corporate
Questionnaire to Reconciliation Australia 2023, 2024, 2025 Social Responsibility
• Provide Quarterly RAP progress reporting to all staff and 30 April, 31 July, Manager Corporate
senior leaders 31 October 2023, Social Responsibility
2024, 2025

• Provide Annual public reporting against our RAP 28 February 2024, General Manager
commitments, outlining achievements, challenges and 2025, 2026 Corporate Affairs
learnings

• Investigate participating in Reconciliation Australia’s biennial May 2024 Manager Corporate
Workplace RAP Barometer Social Responsibility

17. Continue our • Register via Reconciliation Australia’s website to begin January 2025 Manager Corporate
reconciliation journey by developing our next RAP Social Responsibility
developing our next RAP

38 INPEX and Ichthys LNG volunteers help out at the NAIDOC breakfast event 2022 on Larrakia Country
Contact details
For public enquiries about INPEX's Stretch RAP please contact INPEX's Aboriginal Affairs team on enquiries@inpex.com.au or +61 8 6213 6000
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