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Inpex said on Friday that the approval is based on the environmental and social impact assessment, known locally as AMDAL.
The environmental approval covers the core elements of the project from drilling operations to the construction and operation of production and processing facilities, as well as the natural gas liquefaction plant.
It marks a “significant milestone” in the development of the project.
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 Indonesia’s Pertamina has 20 percent, and Malaysia’s Petronas owns 15 percent.
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 on February 12.
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.
In August 2025, Inpex launched the FEED work for the Abadi LNG project.
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.
Ueda also noted during the call that Inpex received non-binding letters of intent from potential buyers exceeding the planned Abadi LNG production volume.
He said that term-sheet negotiations to support a final investment decision (FID) are underway.
Ueda confirmed that Inpex is targeting FID in 2027.
