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Inpex said in its 2024 results report on Thursday that the tender for FEED execution is ongoing, without providing further details.
In August 2024, Takayuki Ueda, president and CEO of Inpex said the company is “continuing to make steady progress on this project.”
“At the end of this year or start of the next year we are making the preparations to start the FEED,” he said at the time.
FID in 2027
LNG Prime invited Inpex to comment on the Abadi LNG FEED and the final investment decision (FID).
A spokesman for Inpex said the company expects to begin FEED in the middle of this year, “provided government approvals and contractor bid preparations proceed as expected.”
“We are now gathering local data through G&G surveys both onshore and offshore, and working on preparing bids for the selection of FEED contractors,” he said.
Moreover, he said FEED will be divided into four packages, including the onshore LNG plant (OLNG), the FPSO, the subsea umbilicals, risers, and flowlines (SURF), the gas export pipeline (GEP) and CCS pipeline.
He said bidding preparations for these four packages are being implemented simultaneously.
“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.
Three partners
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.
Inpex said in December 2023 that it had 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.
Indonesia’s Pertamina owns a 20 percent stake and Malaysia’s Petronas has a 15 percent stake in the PSC.
Inpex holds 65 percent operating interest in Masela PSC and is the operator of the Abadi LNG project.
(This article was updated to include comments by Inpex.)