Japan’s Inpex inks $20 billion deal with Indonesia on the Abadi LNG project

Jakarta, June 18 - Neftegaz.RU. The agreement signed between Inpex and the Indonesian government brings the mega-LNG project back on track following years of delay. The Abadi LNG plant is estimated to cost $18-20 billion.

The development of the offshore find has been delayed 1st by Inpex, which had its initial FLNG development plan approved by the government in 2010, only for the company to revise the plan in 2015 to include a larger capacity FLNG following the increase of estimated reserves at the field.

After the 2nd submission, the Indonesian government then in April 2016 decided the floating solution was no longer an option, telling the company to go back to square one and devise a plan for the Abadi field development via an onshore LNG plant.

Inpex in 2018 conducted Pre-FEED work for an onshore development option with an expected annual production capacity of 9.5 million tons.

The plant, scheduled to start operations in the late 2020s. It will be located in the Masela gas block, owned in a 65%-35% partnership with Shell.

The Project is the 1st large-scale integrated LNG development project operated by INPEX in Indonesia. The Abadi gas field features excellent reservoir productivity and has one of the world’s largest reserves, raising expectations of efficient development and stable LNG production operations over the long-term.