Inpex passes milestone for Abadi LNG project

Japan’s Inpex is gathering momentum on its $20 billion-plus Abadi giant liquefied natural gas project on the Masela production sharing contract in Indonesia.

The field aims to produce 9.5 million tonnes per annum of LNG and a further 150 million cubic feet per day of pipeline gas for Indonesia's domestic market, via a large floating production, storage and offloading vessel, a 180-kilometre offshore gas export pipeline and a two-train onshore liquefaction plant.

Operator Inpex confirmed that a breaking ground ceremony for the Abadi LNG project was held in Indonesia on 16 July.

While the milestone is hailed as a formal start of construction activities, an Inpex spokesperson told Upstream that the ceremony should not be regarded as the official commencement of full-scale project construction.

The targeted FID for the project remains at 2027 with full-scale construction expected following the decision, and production to begin in early 2030s, the spokesperson added.

No additional official communication is disclosed beyond existing information by Inpex, although the spokesperson confirmed that the ceremony reflected ongoing preparations for development, including site readiness activities.

Indonesia President Prabowo Subianto emphasised the significance of the development to Indonesia’s energy security and economic development, adding that “construction must be completed as quickly as possible” in his remarks during the event, according to the Bureau for Press, Media, and Information (BPMI) under the Presidential Secretariat of Indonesia.

The Abadi project is currently in the parallel front-end engineering and design (FEED) stage for key packages, while two major engineering, procurement, construction and installation contracts are in tendering stages.

Local media Antara News added in its report that FEED work had reached 79.56% completion as of early July.

The ceremony is “an important milestone that reflects the collaboration between the government of Indonesia and all stakeholders and Inpex in strengthening national security and promoting sustainable development”, Inpex chief executive Takayuki Ueda said during the event.

“During the EPC (engineering, procurement, and construction) construction phase, which is planned to begin next year, local workforce participation is expected to reach at least 20%,” Ueda added.

Partners in the Abadi project are operator Inpex with 65%, Pertamina Hulu Energi on 20% and Petronas having 15%.

Link: https://www.upstreamonline.com/field-development/inpex-passes-milestone-for-abadi-lng-project/2-1-2018049