Japan’s Inpex will reportedly delay a final investment decision on its planned Abadi LNG development in Indonesia.
Reuters cited Inpex’s managing executive officer, Daisuke Yamada, as saying that the preparatory work for the project’s FEED had been suspended since last year due to the Covid-19 pandemic.
In addition, Inpex is considering redesigning the Abadi project with carbon capture and storage (CCS) or carbon capture utilisation and storage (CCUS) due to the growing global push toward decarbonisation, the report said.
“There will be some delay in the FID though I can’t say when,” Yamada told media during an earnings briefing, Reuters said.
Inpex said in July 2019 that it planned to start front-end engineering design (FEED) on the project, also known as the Masela gas project, in 2020, with LNG production at the giant field due to start by 2027-2028, the report said.
The Japanese firm is developing the Abadi LNG project with energy giant Shell. However, Indonesian upstream regulator SKK Migas has confirmed last year that Shell was in talks to withdraw from the proposed Abadi LNG export project.
Also, 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.
The latest revised plan includes a 9.5 mtpa onshore LNG plant with an estimated cost of $20 billion.
Inpex has also last year signed a preliminary deal to supply Indonesian utility PT Perusahaan Gas Negara Tbk (PGN) with LNG from its planned Abadi development.
The Ichthys LNG operator has a 65 percent stake in the Abadi development while the Hague-based Shell owns a 35 percent stake.