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Media reports said on Wednesday that Inpex had officially launched the FEED work.
“We did indeed hold a press conference in Jakarta this morning about the Abadi LNG FEED process,” the spokesman said.
“The purpose of the OLNG FEED “initiation,” which was raised this morning, is to increase the certainty that FEED work will be completed on schedule by carrying out a portion of the FEED work on the onshore facility in advance of the actual FEED work, which is scheduled to start in the middle of 2025, as previously announced,” he said.
“Today’s announcement does not imply that there has been a change to the schedule concerning FEED work for Abadi LNG, which was outlined during our financial results announcement in February this year,” the spokesman said.
The spokesman said in February that Inpex expects to begin FEED in the middle of this year, “provided government approvals and contractor bid preparations proceed as expected.”
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.