Report: Inpex to postpone Abadi LNG FID

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.

Most Popular

QatarEnergy eyes major LNG trading expansion

State-owned LNG giant QatarEnergy aims to increase trading of non-Qatari physical LNG volumes to 30 to 40 million tons by 2030, according to Qatar’s energy minister and chief executive of QatarEneergy, Saad Sherida Al-Kaabi.

BP ships second Tortue LNG cargo

UK-based energy giant BP and its partners have sent the second LNG cargo produced at the Greater Tortue Ahmeyim FLNG project, located offshore Mauritania and Senegal, according to shipping data.

TotalEnergies seals Ksi Lisims LNG deal

French energy giant TotalEnergies has signed a 20-year deal with Ksi Lisims LNG to buy LNG from the latter's planned export project in Canada. In addition, TotalEnergies will acquire a 5 percent stake in Houston-based Western LNG, the developer, shareholder, and future operator of the Ksi Lisims LNG project.

More News Like This

Inpex: Ichthys terminal sent 30 LNG cargoes in Q1

Japan’s Inpex has shipped 30 LNG cargoes from its Ichthys export plant in Australia during the January-March period of this year, four fewer than in the same period in 2024.

Inpex says Ichthys LNG production temporarily reduced

The Inpex-operated Ichthys LNG export plant in Australia is currently producing at a reduced rate, according to Inpex.

Inpex still expects to launch Abadi LNG FEED in mid-2025

Japan's Inpex still expects to launch the front-end engineering design (FEED) for the planned Abadi LNG project in Indonesia in mid-2025, a spokesman for Inpex told LNG Prime on Wednesday.

Inpex expects to start Abadi LNG FEED in mid-2025

Japan's Inpex expects to start the front-end engineering design (FEED) for the planned Abadi liquefied natural gas (LNG) project in Indonesia in mid-2025.