Australia's NT EPA prosecutes Inpex over under-reported emissions at Ichthys LNG facility

Australia's Northern Territory environmental regulator has begun prosecuting Japanese gas company Inpex over alleged under-reporting of toxic emissions from its Ichthys LNG facility near Darwin. The case centres on benzene and toluene emissions that the company said were significantly under-reported between 2019 and 2024. The matter is expected to come before Darwin Local Court, although no hearing date has yet been finalised.

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The NT Environment Protection Authority said it moved to prosecute after Inpex informed it in October 2025 of the reporting failure. According to the regulator, the under-reporting is alleged to have breached the environmental licence that allows Ichthys LNG to operate. The licence was originally granted on 13 December 2017 and requires annual reporting of total emissions to air in tonnes.

The regulator has said it will not comment further while the case is before the courts. The prosecution follows a recent review of gas processing licences in Darwin, after Inpex's disclosure prompted the NT EPA to recommend changes to the licences of both Inpex and Santos, the city's two major gas processing companies. That review suggests the reporting issue has already had consequences beyond the immediate legal case.

The case matters because Ichthys LNG is one of the Northern Territory's major industrial facilities and sits within a sector that is closely watched for environmental compliance. Allegations involving benzene and toluene are likely to draw attention because both substances are associated with air pollution controls and reporting obligations. The prosecution also places renewed focus on how regulators monitor emissions from large energy projects over long periods.

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Inpex's disclosure covers a five-year period, which raises questions about how the under-reporting was identified and how it was handled once it came to light. The NT EPA's decision to prosecute indicates the regulator considers the issue serious enough to test in court rather than resolve administratively. It also comes at a time when environmental oversight of gas operations remains a sensitive issue in the Northern Territory.

What remains unclear is the scale of the emissions under-reporting, any potential penalties, and whether the case will lead to further regulatory action beyond the prosecution itself. The court process is expected to provide more detail on the alleged breach and the company's response. For now, the NT EPA has said only that the matter is before the courts and that it will not provide further comment.

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