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Inpex announced agreements with BP, PGN, PLN, and Shell Eastern Trading in a statement on Wednesday.
The Japanese firm also reached an agreement in principle with fertilizer producer Pupuk Indonesia regarding pipeline natural gas supply from the Abadi LNG project.
Inpex said it will now work with the prospective customers toward finalizing sale and purchase agreements (SPAs) that collectively are expected to cover a “significant portion” of the project’s anticipated LNG production volume.
“The agreements in principle relating to LNG offtake represent an important milestone for the project and contribute to steady progress toward a final investment decision,” Inpex said.
In addition, the agreement in principle regarding pipeline natural gas supply is expected to lead to a gas sales agreement (GSA), the company said.
It is worth noting that Inpex signed heads of agreements with Indonesian firms, including PGN, last year.
$20 billion
In February this year, Inpex received environmental approval for the Abadi LNG project from the Indonesian government.
With this approval in place, Inpex plans to progressively commence preparatory work at the project site, while securing the understanding and cooperation of the Indonesian government, relevant local authorities, and surrounding communities, the firm said.
Inpex Masela, a unit of Inpex, has a 65 percent operating stake in the Abadi project, while Pertamina has 20 percent, and Malaysia’s Petronas owns 15 percent.
In 2023, Shell completed the sale in October of its 35 percent stake in Masela PSC, which includes the planned Abadi LNG project, to Pertamina Hulu Energi and Petronas Masela.
The project is estimated to cost about $20 billion, and its annual LNG production volume is expected to reach 9.5 million tons.
FEED
Inpex expects to complete the front-end engineering design (FEED) work for the Abadi LNG project by the end of this year, Takayuki Ueda, president and CEO of Inpex, said during the company’s financial results presentation in February.
Based on the detailed cost estimates, calculated on the basis of FEED deliverables that are expected to be obtained at the end of 2026, Inpex will review and verify the validity of the EPC bid proposal, he said.
Inpex launched the FEED work for the Abadi LNG project last year.
A consortium consisting of Technip Engineering Indonesia, Technip Indonesia, and JGC Indonesia is working on the FPSO dual FEED.
Moreover, a consortium consisting of Saipem Indonesia (lead contractor), Tripatra Engineers & Constructors, Tripatra Engineering, and McDermott Indonesia are also working on the FPSO FEED.
Worley SEA Indonesia won the FEED work on the gas export pipeline, as well as the FEED work on subsea umbilicals, risers, and flowlines.
JGC and Technip Energies, and KBR, Samsung E&A, and Adhi Karya (Persero) are working on the onshore LNG (OLNG) plant dual FEED.
