Contributing to Local Economies
Business and employment opportunities are some of the key economic benefits that our business can provide in local communities.
INPEX Australia developed an Industry Participation Plan8 for Ichthys LNG to provide full, fair and reasonable opportunities for Australian suppliers. These commitments are cascaded to contractors through our contracts and procurement processes. Regular progress reporting and scheduled meetings with key contractors are incorporated to assess levels of local content achieved against submitted plans and targets.
A supplier opportunities portal9 has been established on the INPEX Australia website to provide guidance to suppliers seeking opportunities with INPEX Australia. The Industry Capability Network Northern Territory (ICNNT) has been engaged to help identify local suppliers, and we encourage local suppliers seeking opportunities to establish and maintain a company profile with the ICNNT. In FY2021, an overall Australian content level of 89% was achieved for Ichthys LNG operations.
Training and apprentice programs continue to be run by INPEX and key contractors to provide opportunities for locals—including Aboriginal and Torres Strait Islander peoples—to commence careers in the industry and contribute to building local workforce capability.
8 Australian Industry Participation Policy
9 INPEX Australia Website: Disclosed information for suppliers
Case study: Long-term social and economic benefits of Ichthys LNG
An independent report forecasting a bright decade ahead for the Northern Territory (NT) courtesy of INPEX-operated Ichthys LNG was released in 2021.
The report, titled A social and economic impact assessment: Ichthys LNG 2020 – 2030, was launched in September 2021 by the NT Chamber of Commerce and supported by the NT Deputy Chief Minister. INPEX also held briefings for key stakeholders together with ACIL Allen’s lead economist.
ACIL Allen considered business indicators such as operational and capital expenditure, employment and local contract values to assess Ichthys LNG’s contribution to Gross Territory Product, wages and salaries paid to Territory workers, population growth, social services and the valuable contribution of volunteers in the community. The report found that for every full-time job created by Ichthys LNG an additional two jobs were generated in the Northern Territory.
Each year, Ichthys LNG will directly pay A$250 million in wages and salaries to its Northern Territory-based workforce and workers across other sections of the economy in roles created as a result of Ichthys LNG’s operations in the Northern Territory.
Other key economic and social benefits identified in the report included:
- A$7.1 billion in total tax revenue to be generated, with an average of A$649 million going to the Australian and Northern Territory governments each year
- A$2.8 billion of income to be generated, or A$251 million each year
- A$8.4 billion in exports to be contributed, equating to A$770 million each year.
The report also found that Ichthys LNG employees contributed approximately 50,000 hours of volunteering work per annum.
