The Japanese oil and gas company Inpex will start pre-front-end engineering and design (pre-FEED) work on the onshore Abadi LNG liquefaction project in the Masela block (Arafura sea, Indonesia). The company will formulate a plan of development (POD) in the wake of the pre-FEED works results and FEED works will be carried out and lead to a final investment decision (FID).
The Abadi LNG project was approved in December 2010 with a lower capacity (2.5 Mt/year). In September 2015, Inpex decided to triple the plant's capacity to 7.5 Mt/year. However, in March 2016, debates on the costs related to an onshore and an offshore option prompted Inpex to delay its FID from 2018 to 2020. The Indonesian president decided to reject the construction of a FLNG, preferring to have the project onshore. In October 2017, the Indonesian government reached an agreement with Inpex, granting a 20-year extension to Inpex in addition to a 7-year compensation due to the change from a floating LNG facility to a 9.5 Mt/year land-based project.
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