The upstream oil and gas regulator of Indonesia, SKK Migas, has received expression of interests from state-owned power utility PT PLN, from the national gas utility PT Perusahaan Gas Negara (PT PGN) and from the Japanese gas group Tokyo Gas to buy the future LNG production from the 9.5 Mt/year Masela LNG project. Companies have discussed the potential volumes they might buy from the project - PT PLN may buy up to 3 Mt/year of LNG and total LNG purchases from the three companies could reach 40% to 50% of the total production capacity - but have not discussed the price yet.
The Masela LNG project proposed by Inpex received government approval in July 2019. The project includes developing the Abadi gas field in the Masela gas block off the Maluku coast in the Timor Sea (block owned by Inpex (65%) and Shell (35%)) and building a 9.5 Mt/year onshore gas liquefaction plant, gas pipelines and offshore facilities. Inpex is now expected to make a final investment decision (FID) on the project, which could start operation in 2027.
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