The Japanese exploration and production company Inpex has reached an agreement with the Indonesian government to develop the US$15bn Abadi LNG project. The company will submit a development plan for the project to Indonesian authorities by the end of 2020 and target a final investment decision within 2-3 years.
The Masela block is located in the Timor Sea near Indonesia’s border with northern Australia and is owned by Inpex (65%) and Shell (35%). Inpex acquired a 100% interest in the Masela Block in 1998 through an open bid conducted by the Indonesian government. In 2017, the initial Masela Block Production Sharing Contract (PSC) - due to expire in 2028 - was extended for another 27 years, i.e. until 2055. In July 2019, the government approved the revised development plant for the Masela LNG project. As agreed in June 2019, the project includes developing the Abadi gas field in the Masela gas block off the Maluku coast 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 at the earliest. In February 2020, Inpex signed a preliminary agreement to sell 150 mcm/d of gas from the Masela block via pipeline to Pupuk Indonesia (the fertiliser producer will use the gas to feed a refinery) and to deliver 2-3 Mt/year of LNG to PT PLN.
Interested in LNG Databases?
World LNG Database offers a complete set of data on LNG markets. The service provides detailed information on existing and planned liquefaction and regasification plants. It also includes LNG shipping around the world, LNG contracts, time series on regasification and liquefaction capacities, LNG flows and LNG prices for all players in the market.