The Japanese exploration and production company Inpex has signed a preliminary agreement to supply gas from the Masela block off Indonesia to the Indonesian state-owned companies PT Perusahaan Listrik Negara (PLN) and PT Pupuk Indonesia. Inpex will sell 150 mcm/d of gas from Indonesia’s Masela block via pipeline to Pupuk Indonesia; the fertiliser producer will use the gas to feed a refinery. In addition, Inpex will deliver 2-3 Mt/year of LNG to PT PLN.
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.