Inpex is set to expedite the development of its $20bn (Y2.97trn) Abadi LNG project in Indonesia, reported Reuters.
The Japanese oil and gas company, led by CEO Takayuki Ueda, is targeting a commencement date towards the end of this decade.
Go deeper with GlobalData
In an interview with the news agency, Ueda said: “The Indonesian Government has expressed a very strong hope for accelerating the project.”
The company, which holds a 65% stake in the project, may initiate the front-end engineering design by the end of this year or early next year, according to Ueda.
“From there it will be two years plus four years for engineering, procurement and construction,” he said, adding that production could begin in the late 2020s or early 2030s.
“Nothing has been finalised… but we want to do this on an accelerated schedule as much as possible,” Ueda added.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataAbadi LNG, leveraging the Masela block’s gas reserves, is expected to produce up to 9.5 million tonnes of LNG annually at peak capacity.
The LNG will be exported from a proposed terminal to meet the demands of both domestic industries and international markets.
The project’s progress has been previously hindered by planning changes and Shell‘s exit.
Pertamina from Indonesia and Petronas from Malaysia acquired Shell’s 35% interest in the project in 2023.
Japanese Government-backed Inpex is preparing to secure binding contracts with Asian LNG buyers, including those in Japan, as it commences preliminary design work.
“We believe that LNG is very important as a transitional energy source and that there will be sufficient demand until about 2050, especially in Asia,” Ueda noted.
The project is designed to incorporate carbon capture and storage technology, with potential future adaptations for blue hydrogen and ammonia production.
The Abadi LNG initiative is set to become Inpex’s second major LNG venture after the Ichthys project in Australia, which is on track to achieve its targeted LNG production of 9.3 million tonnes this year.
