Inpex to supply Indonesia’s PGN with Abadi LNG

Japan’s Inpex has signed a preliminary deal to supply Indonesian utility PT Perusahaan Gas Negara Tbk (PGN) with LNG from its planned Abadi development.

Inpex Masela, a unit of the Japanese firm, signed the memorandum of understanding with PGN on Friday during a virtual ceremony.

Inpex said it would now start talks with PGN to agree and finalize the terms of the domestic LNG sales and purchase deal.

PGN is the largest national gas company which owns and manages the majority of domestic gas infrastructure and is responsible to carry out a gasification program in
Indonesia.

The LNG supply from the Abadi project is consistent with Indonesia’s focus on
optimizing domestic natural resource utilization, Inpex said.

Additionally, it will provide significant contributions to Indonesia where gas demand continues to grow, including multiplier effects that will benefit the country, particularly in the eastern region, the firm said.

Inpex is developing the Abadi LNG project with energy giant Shell. However, Indonesian upstream regulator SKK Migas has confirmed earlier this year that Shell was in talks to withdraw from the proposed Abadi LNG export project.

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.

Japan’s Inpex has a 65 percent stake in the development while the Hague-based Shell owns a 35 percent stake.

- Advertisements -

Most Popular

Golden Pass LNG contractor Zachry files for bankruptcy

US construction company Zachry said on Tuesday it has filed for bankruptcy, initiating a structured exit from the Golden...

Kinder Morgan secures more time for Gulf LNG export project

US energy company Kinder Morgan and its partners have secured more time from the US FERC to add liquefaction...

Hoegh LNG: commissioning of Brazilian FSRU completed

Commissioning of the FSRU Hoegh Giant which serves Cosan's LNG import terminal in Brazil's port of Santos has been...

More News Like This

Inpex: Ichthys terminal sent 34 LNG cargoes in Q1

Japan’s Inpex has shipped 34 LNG cargoes from its Ichthys export plant in Australia during the January-March period of...

Fugro bags Abadi LNG gig from Inpex

Dutch firm Fugro said it had secured a "significant" marine survey contract from a unit of Japan's Inpex for...

Inpex: Ichthys LNG plant hits record in 2023

Japan’s Inpex has shipped record 129 LNG cargoes from its Ichthys export plant in Australia during the last year,...

Indonesia’s PGN, Hoegh LNG settle Lampung FSRU dispute

Norwegian FSRU player Hoegh LNG has resolved a dispute with Indonesian state-owned gas firm PT Perusahaan Gas Negara (PGN),...