Inpex cites current market environment for cancellation

Inpex cites current market environment for cancellation

Inpex Adjusts Strategic Priorities Amid Evolving Energy Market Dynamics

Inpex Corporation has outlined strategic adjustments in response to shifting market conditions, emphasizing its commitment to a responsible energy transition while prioritizing financial resilience. The company's Vision 2035, a long-term strategy through 2035, underscores its focus on expanding natural gas and LNG operations, advancing lower-carbon solutions, and optimizing capital allocation to align with evolving energy demand according to the company's mid-term plan.

A key component of Inpex's strategy involves scaling its LNG business, including the development of the Abadi LNG project in Australia, which aims for a Final Investment Decision (FID) by 2027 and startup in the early 2030s as detailed in its strategy. The company also plans to enhance liquefaction capacity at the Ichthys LNG project and strengthen LNG trading capabilities to ensure flexible supply. These initiatives align with Inpex's goal to grow its business scale by 60% over the next decade.

Simultaneously, Inpex is accelerating decarbonization efforts, targeting a 60% reduction in net carbon intensity by 2035 (from 2019 levels). This includes integrating carbon capture and storage (CCS) into its natural gas and LNG projects, as well as developing blue hydrogen production and GHG reduction solutions for third parties according to its strategy. The company also aims to contribute to broader energy system decarbonization by exploring synergies between renewables, battery storage, and cleaner gas-fired power generation as outlined in its vision.

Financially, Inpex is balancing growth investments with shareholder returns. The company plans to allocate approximately 20% of investment cash flow to lower-carbon and power-related initiatives, while maintaining a progressive dividend policy and flexible share buybacks as stated in its strategy. Total investment across growth projects, including LNG expansion, CCS/hydrogen, and power-related fields, is projected to exceed 1.8 trillion yen ($13.3 billion at current exchange rates) according to company projections.

Inpex's strategy reflects its response to global energy transitions and market volatility, prioritizing operational safety, profitability, and alignment with net-zero goals by 2050 as detailed in its vision. The company's performance will be tracked through key metrics, including carbon intensity reductions, return on equity (ROE), and cumulative cash flow from operations according to its strategy.

(https://www.inpex.com/english/company/midterm.html): INPEX Vision 2035, INPEX CORPORATION (2025).