Inpex to Start Abadi Pre-Feed

Japan’s Inpex March 30 announced it is ready to start the pre-Feed work for the Abadi onshore LNG project in Indonesia. The LNG project is operated by its subsidiary, Inpex Masela.

In September 2015, Inpex submitted to the government a revised plan of development envisioning a larger 7.5mn mt/yr LNG processing capacity. The following April, the authorities responded by instructing the company to re-propose the plan of development for the Abadi LNG project based on onshore liquefaction.

“Following constructive discussions with the authorities that included agreeing to the need for an economically viable project, Inpex is now set to commence pre-Feed work based on an onshore LNG development scheme with an annual LNG production capacity of 9.5mn mt,” Inpex said.

The Japanese company said it will formulate a detailed revised plan of development contingent on the results of the pre-Feed work and ongoing discussions with the Indonesian authorities “to achieve a cost efficient and economically competitive project.” Once the revised plan is approved by the government, a series of subsequent evaluations including Feed work will be carried out leading to a final investment decision (FID).

In October 2017, Indonesia agreed to extend Inpex’s Masela block contract, which includes the Abadi gas field, by up to 27 years once the present contract comes to an end in 2028.