Japan’s Inpex inks Abadi LNG deal with Indonesia’s PLN

Japan’s Inpex said it had signed a new memorandum of understanding with Indonesia’s state power company PLN regarding the planned Abadi LNG development.

Back in February 2020, Inpex, PLN, and Pupuk Indonesia signed memorandums of understanding for the long-term domestic LNG and pipeline natural gas supply from the Abadi project that aims to liquefy natural gas from the Masela Block offshore Indonesia.

Now Inpex Masela, a unit of Inpex, and PLN have extended and expanded the memorandum of understanding to incorporate joint studies in hydrogen/ammonia and CCS, according to a statement issued by Inpex on Tuesday.

The two firms signed the deal during a meeting organized by Japan’s Ministry of Economy, Trade and Industry (METI) and held in Tokyo, Japan on September 26.

Inpex is developing the Abadi LNG project with LNG giant Shell. However, Shell is in talks to sell its 35 percent stake from the Abadi LNG project.

Recent reports suggest that a consortium consisting of state-owned Pertamina, the Indonesia Investment Authority (INA) sovereign wealth fund, and others could buy the stake.

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 about $20 billion.

CCS, hydrogen

Under the MoU signed in 2020, Inpex is planning to supply gas-fired power plants in Indonesia owned and operated by PLN over the long term from the Abadi development.

The two firms have been in talks on LNG sales since the original MoU, and now they have decided to further expand the cooperation on the Abadi development.

To make the Abadi project “clean and competitive in service of the energy transition, Inpex and its partner are currently conducting a comprehensive study on the introduction of CCS and cost reduction,” the firm said in the statement on Tuesday.

To make further use of CCS facilities, Inpex and its partner are considering the production of blue hydrogen and ammonia using natural gas produced from the project, according to the Japanese firm.

The scope of the new memorandum includes conducting joint studies on supplying blue hydrogen and ammonia using natural gas produced from the project as co-firing fuel for thermal power plants in Indonesia that PLN owns and operates.

In addition, it also includes the capture and transport of CO2 emitted from thermal power plants in Indonesia and the storage of this CO2 in the Abadi gas field, Inpex said.

Most Popular

ConocoPhillips books Dunkirk LNG capacity

US energy giant ConocoPhillips has booked regasification capacity at France's Dunkirk LNG facility, and it also signed an Asian LNG sales and purchase deal.

Argentina’s Southern Energy takes FID on second FLNG

Argentina's Southern Energy takes FID on second FLNG

Aramco eyes large LNG portfolio

Aramco's long-term ambition is to have a portfolio of 20 million tonnes per annum (mtpa) of LNG capacity, according to Aramco’s CEO, Amin Nasser.

More News Like This

Inpex: Ichthys terminal sent 65 LNG cargoes in H1

Japan’s Inpex has shipped 65 LNG cargoes from its Ichthys export plant in Australia during the first six months of this year, down by one cargo compared to the same period last year.

YPF CEO sees FIDs on FLNG projects with Eni, Shell in Q1 2026

Argentina’s state-owned oil and gas company YPF and its partners Eni and Shell may take final investment decisions on two stages of the Argentina LNG project in the first quarter of 2026, according to YPF CEO Horacio Marin.

Inpex awards FEED contracts for Abadi onshore LNG plant

Japan's Inpex has awarded contracts to two contractor consortia for the front-end engineering design (FEED) work for the onshore LNG plant as part of the Abadi LNG project in Indonesia. The contractors include JGC and Technip Energies, and KBR, Samsung E&A, and Adhi Karya (Persero).

Peru LNG sent five cargoes in July

Peru LNG’s liquefaction plant at Pampa Melchorita has shipped five liquefied natural gas cargoes in July, the same as in the previous month.