Program Management for Ichthys LNG Project

This report discusses the program management strategies, benefits, stakeholder engagement, governance, and supporting processes for the Ichthys LNG project. It covers the program overview, strategy alignment, benefits management, stakeholder engagement, governance, supporting processes, and issues encountered. The report is relevant to MAN6303 Program Management course.

MAN6303 Program
Management

TABLE OF CONTENTS
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
Program overview and outcomes.................................................................................................3
Program strategy alignment.........................................................................................................4
Program benefits management.....................................................................................................5
Program stakeholder engagement................................................................................................6
Program governance....................................................................................................................7
Program management supporting processes:...............................................................................8
Issues and problems encountered:...............................................................................................9
Lessons learned and proposals to improve:.................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
Program management is the application of knowledge, tools, techniques and skills for
meeting the program requirements. The definition of a program as given in the standard program
management are the groups of related projects managed in the coordination of the way to obtain
benefits and control over the available management of individuals. A program is a group of
related project managed in the coordinated manner for obtaining benefits not available for
managing individually. In this report the program is based on Ichthys LNG that is a top ranked
natural gas company in the world. The Ichthys LNG program aims to produce 8.9 million tonnes
of LNG and 1.65 million tonnes of LPG annually with more than 100000 barrels of condensate
daily.
MAIN BODY
Program overview and outcomes
The Icthys LNG project is a project which is led by INPEX alongside one of the world’s
major oil companies. The developing gas and the condensate field off the shore of Western
Australia. In the first time a Japanese corporation is the one that is acting as the major operator. It
takes lead in a large scale LNG development project. This is one of the few energy program in
the world that has been incorporated with the whole chain of development and production that

includes subsea, offshore, pipeline and onshore oil project. In this program the Gas and
condensate from the Ichthys Field is going to be exported to the onshore facilities for processing
close to the Darwin with a 890 kilometre pipeline (Kumar, 2022). Mostly these condensates are
directly shipped to the global markets from a floating production, storage and offloading facility
that permanently moored near the Ichthys Field.
Located in the coast of Australia, Ichthys is a major project which is primarily producing
liquefied natural gas. This condensate gas is going to be extracted from the offshore field and is
processed on a semi-submersible platform which separates the gas from the liquid prior to the
transportation of the gas via a subsea gas pipeline. In the addition to the ultra-long operating life
the Ichthys facilities is considered to be designed in a way that it will withstand extreme weather
conditions. It is going to help the stringently comply with the environmental standards. The
onshore liquefaction plat is going to be the first in the world to use the combination cycle
technology. In this the CPF and FPSO have a special system that has fitted the recovery that has
been vented in the gas and steam.
Program strategy alignment
The program strategy alignment is the performance domain that has been able to identify
the program outputs and outcomes which provide benefits that are aligned with the organization's
strategies goals and objectives (Davis and Carle, 2022). Programs have been designed
strategically with the alignment of the organizational strategy for the facilitation of the
realization of the organizational benefits. The alignment is required in the program management
strategy is required because of understanding the program with fulfilment of the portfolio and
organizational strategy. These skills are considered to be the factor that is going to help align the
program with the long term goals of the organization. The development of this strategy is very
effective for the initial level of evaluation and the selection process that may be formal or
informal to help the organization determine which initiative are to be taken for the approval,
denial ad defer of the part of the portfolio management practice of the organization.
Maturity of the organization is considered to be the terms of the program and the project
management makes them more likely to be able to formalize the process of the program selection
of such portfolio review board or program steering committee (Null, Cross and Brandon, 2020).
The program decision-making body is a factor that issues a program that charter defines the
strategic objectives and benefits of a program which is expected to deliver. The definition of the

scope and the purpose of proposed program is presented to govern the obtained approval,
funding and authorization. It is also considered to be the factor that confirms the commitment of
the organization resources for the determination of the program approach towards achieving the
objectives (Costante, 2018). This program about the Icthys LNG project is said to perform very
effectively with the initiation of the development of program business case. Such alignment
helps it with the documentation of the economic feasibility study that is used for the
establishment validity of the benefits towards the delivery by the program. During the execution
of the program formulation phase this alignment is a very effective process that initiates the run
towards the program life cycle. It helps in the identification of the quantified environmental
factors, outcomes and benefits that helps in the program risks execution and control (Costante,
2018).
Program benefits management
The Program benefit management of Icythy LNG project has been said to have the
following benefits,
Social benefits and impacts:
With the help of life of the Ichthys project is going to be benefiting the Darwin
community as it is going to be generating benefit from the creation of the employment. Training
and business development opportunities has been considered to be major project that is going to
have some sort of social impact. There are going to be certain benefits from these impacts that
this project is going to be making as follows,
 It is going to give rise in the business opportunities employment and other factors that are
going to be very helpful for the society. There are going to be action such as the
stimulation of the economic growth in the northern territory and Australian by providing
access to the contract and procurement of opportunities to the potential suppliers.
 Housing is going to be yet another benefit from this program. The accommodation village
will be established to house majority. In such villages that are going to be near this
project they are going to get new facilitation that are required for living. It is going to be
including social and recreational facilities for the benefit of the residents that will assist in
limiting pressure on the existing facilities enjoyed by the local community.
 In order to be able to assess the potential impact of the project traffic on the existing
Darwin road network, traffic modelling was undertaken with the help of tool standard to

the traffic engineering industry in Australia. Prior to the constriction of the onshore
facility, INPEX is going to be establishing designated routes for the project vehicles
travelling that is going to be very effective for the particular area in the society.
Economic benefits and impacts:
From this project there are going to be some definite impacts of the projects that is going
to be the forecast that aid the economic modelling. Hence, the forecasts suggests that the national
and the local economies are going to have a direct result from this project. In the upcoming it is
going to expand the economy by up-to $3.5 billion annually. It is said to be including the
increase in taxation payments and household income of approximately $1.8 billion annually over
the life of the operation.
Program stakeholder engagement
For this program the stakeholder engagement has been a centre point to capture all the
stakeholder details for the community engagement activities for the project. All the historical
data has been collected from the planning phase and was imported into the Darzin such that the
team can track the whole history for the interaction with the key stakeholders and building on
existing information.
In the stakeholder engagement of this project the following considerations have been
considered to be the following,
 The community feedback tool has been considered to be the one that provides the
business project is the 1800 feedback line that was managed by the Inpex management.
The 1300 feedback line has been considered to be the management of JKC. These
feedbacks from the community is able to consider the inquiry from the perspective of the
local community (Ironsi, 2021).
 Information session from the stakeholders are the session and updates which are
considered to be held through certain digital platforms required for the informing
stakeholders regarding the operations.
 Sponsorship events are the ones that have allowed the business to connect with the
company and their ideas which would help in providing the success that has been
required.
 Interview, meetings and discussion with the government agencies, local councils,
traditional owners, business groups, training and education providers, interest groups,

media and local community members are taken under consideration for the proper level
of stakeholder engagement (Barletta and et.al., 2020).
 Through the project update newsletters and bulletins are considered to be the ones that
are taken under considered for spreading the knowledge regarding the ways in which the
information can be spread to the society. This has been the best way of interacting with
the stakeholders for this organization.
Program governance
For this project the board of directors is the advisory body that have been able to establish
the following needs in the program governance.
 The nomination and compensation advisory committee the majority of the outside
officers are considered to be the independent outside directors that have the purpose of
strengthening the independence, objectivity and accountability of board of directors.
These functions are considered to be the one that have further enhancement of the
corporate governance system.
 The INPEX advisory committee is present for the purpose of obtaining multifaceted and
objectives counselling with the recommendation from the external experts across a wide
range of area. It has also included domestic international political and economic outlook.
The prospects for the energy sectors and the substantiality has been aim to maintain
sustainable growth and enhance medium and long term corporate value (Tokunaga,
2018).
 Developing the strategic direction of the is going to be the risk that is going to be
providing the appetite that is helpful for the risk and management of the organization. It
is going to be the key factor for the allocation of the resources that are required for the
business to be able to make strategic plan.
 Monitoring of the performance is going to be the key part of the success as is going to be
very effective with the growth and understanding of the accountability that has been
required for the reduction for the conflict and also ensuring the decision-making. It can
be said that the growth of the program is going to be depended on the ways in which it is
going to manage.
 Decision making is the bodies that is going to be key authority to accelerate the
deceleration of the permanent hold of the project that is going to be able to maximize the

overall investment from the projects. Clear and consistent decision-making is going to be
the key point of the success that is present across the project life-cycle (Inpex
sustainability report, 2022). In this the investment controls are also going to be a part of
the critical part of the corporate governance success.
Program management supporting processes:
Program management is a set of practise which is undertaken in order to manage certain
program so can ace its outcomes and can curb the intended objective. Here, in this case a big
expedition is being carried out, in such predicament there are some program management
supporting processes which can be imparted in attempt to bring the best sets of outcomes. These
supporting process can also be articulated as the processes which help to the core process. These
supporting processes are as-
fabrication of better financial policy- this process is quite helpful since the project is quite
wider and is intended to produce 8.9 million tonnes of LNG and 1.65 million tonnes of LPG so
there would be a great cost (England and et.al., 2020) By this process such issues are being
controlled. The project is intensively bigger and surgining need to have such a policy. It was seen
that there has been some additional costs so for making it successfully such supporting process is
very much helpful.
Human resource management process- A better code of conduct can be set up supporting
better human capital. Lchthys LNG is going with great efforts so there is need of having such a
workforce which augment its overall capacity. Better HRM process is the most suitable in this
context to support the core process.
Process for goods and services to internal customers- It is supposed in such great program the
fact can not be rejected that there may be such instances where internal customers may be
required. To deal with such notions the internal customer related provision making is imparted
(Ironsi, 2021)
Provision for information technology- Lchthys LNG is using modern technology to carry out
the program so with this respect they are having some strong provisions supporting the entire
course of action so can eradicate any issue in term of information technology. For oil extraction

and to manage offshore, subsea, pipeline, onshore work these provisions are paving the way
forward.
Issues and problems encountered:
Since the program is quite bigger and having its great diaspora that's the reason there are some
problems too which have been encountered by the team. These issues did not only impact quality
but also impacted ability to bring better and intended outcomes so the problems are as-
Safety issues- Over the time, it was found that due to this project there were some issues were
found such as improper placement of electrical equipments. Different inspections have shown
that this peril is impacting better control and also giving threat to occur severe losses. The
pipeline is very longer and there may be problems to ensure the highly affluent safety norms so
can prevent any form of misfortune.
Environmental issues- It is seen that Lchthys LNG project is facing perils of climate change.
There are number of expeditions are going on against it. People are protesting and disseminating
the message that this is going to be a negative practise. This problem is there form last 3-4 years
and making people believe against this program. With the progress of time the society is getting
prone to environmental issues specifically after the hit of Covid-19 (Anshin and Bobyleva, 2021)
Legal issues- the project has delayed some things such as subcontractors has delayed the lchthys
power plan, it have created some legal issues. At the same time there are still some issues in term
of carbon emission related management. The program is lacking in this term which is a big
threat. Carbon emission may be seen as a tough nut since there are modifications and
requirements in laws due to over contemplation on SDGs.
Contractual dispute- It has occurred loss of 37 billion USD in 2017 (Martinsuo and Hoverfält,
2018)
(Springer, 2019) this delay has costed a lot to this project since there has been some issues which
somehow hindered the overall performance and led to delay. This puts forward some challenges
to the program. It was also seen that some contractors have cancelled their contract due to some
internal issues. The project is quite bigger and such notions can not be accepted.
Lessons learned and proposals to improve:
Form these problems some key lessons were learned since the program has faced some
severe issues which not only toppled its ability to perform on merit but also brought some hyper

catastrophe to the management. The problems or issues were widely ranging and due to wider
diaspora the learnt lessons are also highly lucrative.
 It is learnt that there is always need to ensure better safety norms since in such program
which are having potential to impact lives the need of making better arrangements are
highly needed. It was also understood that if there is no such provision then at any stage
the program may be hindered.
 The fact can not be ignored that the environmental things are also important before
moving forward an entity is having need to work on its environmental compliances so
can eradicate any misshapenness.
 There must be such a legal framework so can eradicate all form of legal issues. The delay
in such a big program have potential to pour on drastic cost. So it must be controlled to
the fullest extent.
 The most significant lesson drowned form the course of action is that there must be well
fabricated plan when it comes to contract then there should be a better clarity. It not only
eradicates the sense of confusion but gives better roadmap.
Proposal to improve-
 It is proposed that the entire progress of the project must be undertaken. There should be
such a mechanism which supports these entire activities and on regular interval that can
be traced.
 If analysis such as porter's five forces, PESTLE are taken into consideration then it would
be chary on the top for the project to accomplish it with greater affectivity.
 This is also proposed that if any problem is there then immediate actions must be taken so
can eradicate them before they get culminated.
 At the end there should be a wider approach since as it is experienced form the case that
the majority of the problems are there due to improper way to address the issues so it is
proposed that a wider approach must be there supporting the final aim of this project.
CONCLUSION
From the above report it can be concluded that the Ichthys LNG program is going to be
able to achieve the aims and objectives and be a success to the society, economy and business. In
this report an overview of the program has been given highlighting the outcomes of the program.

From this report the program strategy alignment and the stakeholder engagement has been
explained. This is going to be considered to be the key factor which is going to provide the
program with stakeholder engagement and management supporting process. From this report the
issues and problems which can arise is explained and suggestion has been provided.

REFERENCES
Books and Journals
Anshin, V. and Bobyleva, A., 2021. The digital transformation program management in
medium-sized businesses: A network approach. Serbian Journal of Management. 16(1).
pp.147-159.
Barletta, V. S., and et.al., 2020. Managing a smart city integrated model through smart program
management. Applied Sciences. 10(2). p.714.
Costante, G., 2018. Project financing of large LNG export projects: a comparative and a
quantitative analysis.
Costante, G., 2018. The role of project finance in the natural gas industry: the Ichthys LNG
project (Doctoral dissertation).
Davis, B. W. and Carle, C. J., 2022. Biodiversity protection offsets in the Northern Territory–the
Ichthys LNG story. The APPEA Journal, 62(2), pp.S243-S245.
England, E. and et.al., 2020. Radiology residency program management in the COVID era–
strategy and reality. Academic Radiology. 27(8). pp.1140-1146.
Ironsi, C. S., 2021. EFL Program Management in Turkish Cypriot Educational Context:
Qualitative Case Study. International Journal of Asian Education. 2(1). pp.25-36.
Ironsi, C. S., 2021. EFL Program Management in Turkish Cypriot Educational Context:
Qualitative Case Study. International Journal of Asian Education. 2(1). pp.25-36.
Kumar, B. R., 2022. Case 29: Ichthys LNG Project. In Project Finance (pp. 237-240). Springer,
Cham.
Martinsuo, M. and Hoverfält, P., 2018. Change program management: Toward a capability for
managing value-oriented, integrated multi-project change in its context. International
Journal of Project Management. 36(1). pp.134-146.
Null, G., Cross, J. A. and Brandon, C., 2020. Effects of Lean Six Sigma in program
management. Journal of Manufacturing Technology Management.
Springer, M. L., 2019. Project and program management: A competency-based approach.
Purdue University Press.
Tokunaga, Y., 2018. Financing a mega LNG project and ‘raising the bar’in securing a social
licence to operate. The APPEA Journal. 58(2). pp.753-755.
Online

Ichthys LNG, 2022 [Online]. Available through: <https://www.inpex.com.au/projects/ichthys-
lng/>
Inpex sustainability report, 2022[Online]. Available through: <https://www.sustainability-
report.inpex.co.jp/2022/en/governance/corporate-governance.html>