Japan’s energy company INPEX has announced that it has reached an agreement in principle with PT Pupuk Indonesia concerning pipeline natural gas supply from the Abadi LNG Project in Indonesia. The preliminary agreement is intended to supply LNG from an export project currently under development in Indonesia (INPEX press release, 20/05/2026).
INPEX has also secured agreements in principle with BP, PT Perusahaan Gas Negara (PGN), PT PLN Energi Primer Indonesia, and Shell Eastern Trading regarding LNG offtake from the Abadi LNG Project in the Masela Block offshore Indonesia.
INPEX received environmental approval from the Indonesian government in February 2026 (KEI, 24/02/2026). Once operational, the project is expected to produce 9.5 Mt/year of LNG, accounting for more than 10% of Japan’s annual LNG imports, along with approximately 150 million cubic feet per day of natural gas for the domestic market and 35,000 barrels per day of condensate. The project is being developed by INPEX (65%, operator), PT Pertamina (20%), and PETRONAS (15%).
The company will now collaborate with prospective customers to finalise sale and purchase agreements (SPAs), which are expected to collectively cover a significant share of the project’s anticipated LNG output, according to the company. In addition, the agreement in principle on pipeline natural gas supply is expected to lead to a future gas sales agreement (GSA).
Furthermore, INPEX has jointly been awarded rights to explore the Barong Working Area offshore Eastern Java, in Indonesia, as part of the second Indonesia Petroleum Bidding Round 2025 (INPEX second press release, 21/05/2026). In this context, INPEX, through its subsidiary INPEX BARONG, has signed a Production Sharing Contract (PSC) with the Indonesian upstream regulator SKK Migas as well as BP Barong. Under this agreement, INPEX BARONG will act as operator with a 51% stake, while BP Barong holds 49%. The Barong Working Area is located offshore East Java, in a region where several oil and gas fields have already been discovered.
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