Inpex CCUS Projects, 10 Mtpa Darwin Plan, Kanto Natural Gas JV, and 4 Key Agreements (2021-2025)

Inpex Project Strategy: Asset Defense with CCS vs. Market Creation with DAC

In 2025, INPEX Corporation’s decarbonization strategy solidified around deploying large-scale Carbon Capture and Storage (CCS) projects as a defensive measure to protect the economic viability of its core natural gas assets, a pragmatic approach that diverges from competitors pursuing market-facing Direct Air Capture (DAC) ventures. While prior years involved planning, 2025 saw INPEX advance tangible, multi-billion dollar CCS projects directly integrated with its LNG facilities, aiming to mitigate operational emissions rather than build new revenue streams from carbon removal credits.

INPEX Focus on Integrated CCS

The company’s actions in 2025 demonstrated a clear capital allocation priority toward point-source capture. This strategy leverages its extensive experience in complex engineering projects to de-risk its fossil fuel investments in a carbon-constrained world.

• Between 2021 and 2024, INPEX conducted foundational studies and planning for decarbonizing its major assets, particularly the Ichthys LNG project in Australia.
• In November 2025, this strategy culminated in a proposal for Australia’s largest CCS project near Darwin, a joint venture with Total Energies and Woodside designed to capture and store 8 to 10 million tonnes of CO₂ per annum (Mtpa), primarily from the Ichthys facility.
• Concurrently, INPEX initiated Front End Engineering and Design (FEED) for the Abadi LNG Project in Indonesia, framing CCS integration as a central element for creating a lower-carbon energy supply chain.

Competitor Divergence to Pure-Play DAC

While INPEX focused on its own emissions, other energy and technology firms pushed ahead with standalone DAC projects. This positions them to capitalize on the growing voluntary and compliance markets for carbon dioxide removal (CDR), a market INPEX is currently observing rather than actively building.

• This approach contrasts sharply with competitors like Occidental Petroleum, whose subsidiary 1 Point Five was on track in 2025 to launch its Stratos facility, a pure-play DAC plant designed to capture 500, 000 tonnes of CO₂ per year directly from the atmosphere.
• Similarly, energy producers like BKV Corporation have focused on creating integrated CCUS businesses to decarbonize the Texas energy grid.
• INPEX‘s official “Vision 2035” and technical roadmaps mention DAC as a future possibility, but its tangible 2025 project pipeline was exclusively centered on point-source CCS, indicating a follower position in the broader carbon removal technology space.

$1.3 B Competitor Benchmark, INPEX Capital Focus on Integrated Assets

While INPEX did not disclose project-specific investment figures in 2025, the sheer scale of its proposed CCS hubs implies multi-billion dollar commitments. The broader market context was defined by high-profile investments in pure-play DAC, such as Occidental’s Stratos project, which set a financial benchmark and highlighted the significant capital required to commercialize carbon removal technologies.

Occidental’s Stratos DAC Financing

The financing of the Stratos project established a clear precedent for funding large-scale DAC. Occidental’s success in attracting a major institutional investor signaled growing confidence in the commercial viability of the carbon removal market, independent of decarbonizing existing fossil fuel operations.

• The Stratos DAC facility, with a planned annual capture capacity of 500, 000 tonnes, carried a total investment of $1.3 billion and was on track for a mid-2025 launch.
• In a key validation for the sector, Black Rock committed $550 million through a joint venture to help build the Stratos plant, underscoring investor appetite for scalable climate technologies.

INPEX Implied Capital Allocation

INPEX‘s capital was strategically channeled into projects that directly support its core business. The investments are structured to preserve the value of its long-life LNG assets by addressing their carbon footprint, rather than to create a new, independent business line in carbon management.

• The proposed 10 Mtpa Darwin CCS hub and the CCS-integrated Abadi LNG project represent massive capital undertakings, with industry-wide benchmarks for related infrastructure running at a CAPEX rate of approximately $1, 549/k W.
• This capital allocation strategy aligns with that of industrial emitters in sectors like steel, where companies such as Tata Steel and JSW are exploring CCUS primarily to decarbonize existing production facilities.

Table: Key Carbon Management Investments and Benchmarks (2025)

INPEX 2 Strategic JVs to Build Regional Carbon Hubs (2025)

In 2025, INPEX executed a partnership-heavy strategy, forming key joint ventures to distribute the immense financial and operational risks of building regional CCS infrastructure. This collaborative model is essential for developing the large-scale CO₂ transport and storage hubs that underpin its decarbonization plans for Australia and Japan.

Darwin CCS Consortium

The proposed Darwin CCS hub is a cornerstone of INPEX‘s strategy to decarbonize its flagship Ichthys LNG asset. Partnering with other major energy players with a presence in the region was a critical step to advance the project from concept to a formal proposal.

• In November 2025, INPEX announced it was working with Total Energies and Woodside on a joint venture to develop the CCS project near Darwin.
• The project aims to create a multi-user hub with an initial capacity of 8 to 10 Mtpa, leveraging depleted gas fields for permanent CO₂ storage.

Metropolitan CCS, LTD.

To advance its domestic ambitions, INPEX established a partnership to explore and develop a CCS value chain serving one of Japan’s primary industrial and population centers. This move signals a strategy to replicate the hub model in different geographies.

• In April 2025, INPEX and Kanto Natural Gas Development established a joint venture named “Metropolitan CCS, LTD.”
• The venture’s purpose is to conduct studies and pursue the commercialization of CCS projects in the Tokyo metropolitan area, targeting emissions from hard-to-abate industries.

Table: INPEX Carbon Management Partnerships (2025)

Australia and Japan: INPEX’s Geographic Focus for Carbon Hubs

INPEX‘s carbon management activities in 2025 were geographically anchored in Australia and Japan, two regions where the company operates major energy assets and where favorable geology and policy environments support the development of large-scale CCS infrastructure.

Australia as a CCS Epicenter

Australia became the clear center of gravity for INPEX‘s decarbonization efforts, driven by the urgent need to manage emissions from its massive Ichthys LNG facility. The country’s vast, well-understood geological formations offer significant potential for secure, long-term CO₂ storage.

• While the 2021-2024 period was marked by studies, 2025 saw concrete action with the formal proposal for the Darwin CCS hub and the submission of an environmental referral for the Bonaparte CCS project in October 2025.
• These projects are located in the Northern Territory, in close proximity to the Ichthys gas fields and processing facilities, minimizing CO₂ transportation costs and logistical complexity.

Japan as a Domestic Proving Ground

In its home market, INPEX focused on building an end-to-end domestic value chain for low-carbon energy. The initiatives in Japan serve as proving grounds for integrating hydrogen production with CCS, creating a blueprint for future projects.

• In June 2025, INPEX began commissioning Japan’s first blue hydrogen and ammonia project at the Kashiwazaki Clean Hydrogen/Ammonia Park in Niigata Prefecture, which includes an integrated CCUS component.
• The formation of the “Metropolitan CCS” joint venture in April 2025 further demonstrates a strategy to establish regional carbon management infrastructure to support industrial decarbonization within Japan.

CCS at Commercial Scale, INPEX DAC Initiatives Remain Exploratory

In 2025, INPEX‘s carbon management strategy was firmly grounded in technologically mature, commercial-scale CCS solutions to address its immediate emissions liabilities, while its engagement with the more novel field of Direct Air Capture remained in an early, exploratory stage.

CCS as a Bankable Technology

The company’s major project advancements in 2025 confirm its view of CCS as a de-risked and bankable technology ready for deployment at the massive scale required by its LNG operations. This approach prioritizes proven engineering over nascent, higher-risk technologies.

• The decision to advance the Abadi LNG Project to FEED with integrated CCS and the proposal for the 10 Mtpa Darwin hub signal confidence in the technical and commercial feasibility of large-scale point-source capture and storage.
• This reliance on established technology is common in capital-intensive industries, with companies like the modular capture provider Carbon Clean also focusing on proven solvent-based systems for industrial clients.

DAC in the Strategic Roadmapping Phase

Despite DAC’s inclusion in long-term corporate vision documents, INPEX‘s actions in 2025 showed no tangible investment in or deployment of the technology. This positions DAC as a long-term strategic option rather than a near-term capital priority.

• The broader DAC industry in 2025 was focused on advancing technologies from Technology Readiness Level (TRL) 5 toward TRL 8, with several companies operating or building large-scale pilots.
• INPEX announced no pilots, technology partnerships, or direct investments in DAC companies in 2025, suggesting it is a technology follower, waiting for costs to fall and operational models to be proven by more specialized players. The subsequent withdrawal of the Bonaparte CCS project from government assessment in early 2026 also highlights the significant execution risks that exist even for more mature CCS projects.

SWOT Analysis of INPEX’s Carbon Management Strategy

INPEX‘s 2025 carbon strategy leverages its core competency in large-scale project execution, representing a significant strength. However, this focus on defensive, asset-integrated CCS creates a potential weakness by ceding leadership in the high-growth, innovative DAC market to more agile competitors, exposing the company to long-term strategic threats.

Table: SWOT Analysis for INPEX Carbon Management Initiatives

INPEX 2026 Outlook: Will Darwin CCS Advance or Face Bonaparte’s Fate?

The most critical variable for INPEX‘s decarbonization strategy in the year ahead is whether its flagship Darwin CCS proposal can successfully navigate the complex regulatory and commercial landscape that ultimately led to the withdrawal of its Bonaparte CCS project. The outcome will serve as a key validator or a major setback for the company’s entire asset-centric CCS approach.

• If this happens: INPEX and its partners secure key environmental approvals and a financial investment decision (FID) to move the Darwin CCS project into the full execution phase.
• Watch this: Announcements of new offtake agreements for CO₂ storage from third-party industrial emitters beyond the founding partners. Such deals would signal the project’s viability as a true multi-user hub and a new line of business.
• These could be happening: To hedge its technology risk, INPEX may make a small, strategic investment in a DAC technology company or join a research consortium. This would be an early signal of a shift from a purely defensive CCS posture toward embracing a broader range of carbon removal solutions. The start of CO₂ injection at the Kashiwazaki park, which occurred in September 2026, will provide crucial operational data for its domestic strategy.

The questions your competitors are already asking

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