Japanese group Inpex has decided to postpone the final investment decision on its proposed 7.5 Mt/year Masela - Abadi floating LNG (FLNG) project in Indonesia by at least two years. Inpex, which owns 65% of the project (35% Shell) now plans to make a final investment decision on the LNG project in 2020, instead of 2018, which will delay the commissioning of the facility from 2024 at the earliest to 2026.
The group is still awaiting the approval of the revised field development plan (Plan of Development, PoD) for the Masela area, submitted in September 2015. As a result of the delay, Inpex plans to cut its Indonesian workforce by at least 40%.
According to the Ministry of Maritime Affairs of Indonesia, the 7.5 Mt/year Masela - Abadi floating LNG (FLNG) project could be US$6bn cheaper if built onshore; a decision on the location of the terminal will be necessary to approve the PoD and the Indonesian president announced that he would take a decision on the location soon.
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