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Ueda revealed this during the company’s financial results presentation on August 9.
He said that Inpex is now working to turn these non-ninding agreements into binding deals alongside front-end engineering design (FEED) work for the project in Indonesia.
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.
Inpex just launched the FEED work for the Abadi LNG project.
A consortium consisting of Technip Engineering Indonesia, 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 the FEED work on subsea umbilicals, risers, and flowlines.
JGC and Technip Energies, and KBR, Samsung E&A, and Adhi Karya (Persero) will work on the onshore LNG (OLNG) plant dual FEED.
Financing
Ueda said that the total FEED costs will reach about 140 – 150 billion yen ($947 million – $1.01 billion).
Cash allocation for the Abadi LNG development from 2025 to 2027 is in the range of 400-600 billion yen.
He noted that Inpex is also working on project financing.
The project will primarily utilize equity for the upstream part and loans for the downstream part.
Uead said that Inpex received “positive” feedback by lenders to provide loans in the current environment.
Negotiations with the potential lenders will be held in parallel with the FEED work.
Inpex previously said that FEED typically takes two years to accomplish, so that would put FID in around 2027.
Following FID, the company aims to start production at the beginning of the 2030s.