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Inpex announced the awards for the OLNG contract package in a statement on Wednesday.
According to Inpex, the FEED work involves reviewing and defining the specifications of OLNG.
Inpex said the OLNG contract package consists of a “dual FEED” method involving two contractor consortia that will work in parallel but separately to ensure a competitive environment is maintained.
One consortium consists of JGC Indonesia (lead contractor) and Technip Engineering Indonesia, while the other consists of KBR Indonesia (lead contractor), Samsung E&A, and PT Adhi Karya (Persero).
In this method, FEED work and engineering, procurement, and construction (EPC) work will be awarded to the same contractor consortium, effectively assigning EPC work to the contractor consortium that delivers technically and commercially superior FEED services, Inpex noted.
The FEED work includes a scope related to carbon capture and storage (CCS).
This follows the project’s earlier FEED package awards for floating production, storage and offloading (FPSO), subsea umbilicals, risers and flowlines (SURF), and the gas export pipeline (GEP).
Consequently, the Abadi LNG project has completed the awarding of all four FEED packages.
A consortium consisting of Technip Engineering Indonesia (lead contractor), Technip
Indonesia, and JGC Indonesia will work on the FPSO dual feed.
Moreover, a consortium consisting of Saipem Indonesia (lead contractor), Tripatra Engineers & Constructors, Tripatra Engineering, and McDermott Indonesia will also work on the FPSO FEED.
Worley SEA Indonesia won the FEED work on the gas export pipeline as well as for the FEED work on subsea umbilicals, risers, and flowlines.
9.5 mtpa
Inpex Masela, a unit of Inpex, has a 65 percent operating stake in the Abadi project, while Indonesia’s Pertamina has 20 percent and Malaysia’s Petronas owns 15 percent.
The project’s annual LNG production volume is expected to reach 9.5 million tons, equivalent to more than 10 percent of Japan’s annual LNG imports.
In April, a spokesman for Inpex told LNG Prime that the company still expects to launch the FEED work for the planned Abadi LNG project in mid-2025.
“We have also said that FEED typically takes two years to accomplish, so that would put FID in around 2027. We will aim to start production at the beginning of the 2030s,” the spokesman said.
In May, Inpex also signed preliminary agreements with Indonesian firms regarding the LNG project.
The Inpex-operated project has seen many changes over the years and initially, the development of the Masela offshore block involved a floating LNG plant, while it now includes a 9.5 mtpa onshore LNG plant with an estimated cost of about $20 billion.
In December 2023, Inpex received written approval for the revised plan of development for the Abadi LNG project, which includes a CCS component.
Prior to that, Shell completed the sale in October of its 35 percent stake in Indonesia’s Masela PSC, which includes the planned Abadi LNG project, to Pertamina Hulu Energi and Petronas Masela.
