Aug 06, 2025 (MarketLine via COMTEX) --
The project extends until 15 November 2055 under a PSC.
The Abadi LNG project, operated by INPEX Masela, has initiated front-end engineering and design (FEED) work at its onshore liquefied natural gas (OLNG) plant in Masela Block, Indonesia, marking the completion of all four FEED package awards.
This development has now progressed with an OLNG contract package award.
The project, which extends until 15 November 2055 under a production sharing contract (PSC), covers an area of around 2,500kmA at water depths ranging from 400aEUR"800m.
Located 170aEUR"180km south-west of the Tanimbar Islands Regency, the Abadi LNG project is expected to produce a total natural gas output of 10.5 million tonnes per annum (mtpa).
The FEED work is crucial for detailing the OLNG specifications. It employs a "dual FEED" approach with two separate contractor consortiums to foster competition.
PT JGC Indonesia and PT Technip Engineering Indonesia form one consortium, while PT KBR Indonesia, Samsung E&A and PT Adhi Karya (Persero) make up the other.
The consortium that provides superior FEED services is set to win the FEED and subsequent engineering, procurement and construction work.
The OLNG contract package includes provisions for carbon capture and storage, aiming to produce 9.5mtpa of LNG. This volume equates to more than 10% of Japan's yearly LNG imports.
The project is expected to enhance energy security for Indonesia, Japan and other Asian nations, offering a stable supply of low-carbon energy.
INPEX has outlined that the FEED work aligns with its Vision 2035 plan, announced in February 2025, aimed at expanding its natural gas and LNG business and reducing greenhouse gas emissions.
Moreover, the project is poised to impact the economic development of eastern Indonesia and support the country's ambition to achieve net-zero CO2 emissions by 2060.
INPEX remains focused on strengthening its Indonesian operations and actively contributing to the regional economy.
In March 2024, Inpex Masela awarded a marine survey contract to Fugro for the project.AA
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