Inpex has initiated the front end engineering and design (FEED) phase for the Abadi LNG Project located in the Masela Block, Indonesia.
This phase involves assessing and specifying the requirements for facilities tasked with hydrocarbon production and processing from the Abadi gas field, alongside an onshore liquefied natural gas (LNG) facility.
The FEED encompasses four packages, which include onshore LNG, floating production storage and offloading (FPSO), subsea umbilicals, risers, flowlines (SURF), and a gas export pipeline (GEP). Each section includes elements related to carbon capture and storage.
The FPSO contract employs a “dual FEED” strategy whereby two contractor consortiums will conduct work simultaneously yet independently, fostering competition.
The contract for engineering, procurement and construction (EPC) will subsequently be awarded to the consortium demonstrating superior FEED services. This dual FEED method will also apply to the onshore LNG package.
The project anticipates producing 9.5 million tons of LNG annually, representing over 10% of Japan’s yearly LNG imports. It aims to bolster energy security in Indonesia, Japan, and other Asian nations while providing a sustainable low-carbon energy source over the long term.
The abundant reserves and the carbon capture and storage (CCS) component are expected to facilitate efficient development.
Inpex projects that FEED work will expand its natural gas and LNG operations and cut greenhouse gas emissions per its Vision 2035 strategy set out in February 2025. The project is slated to enhance economic progress in eastern Indonesia and aid the nation in achieving net-zero carbon dioxide emissions by 2060.
The Abadi LNG Project’s production sharing contract is valid until November 2055. Inpex Masela holds a 65% operational stake, while Pertamina Hulu Energi Masela owns 20%, and Petronas Masela maintains 15%.
The project area spans roughly 2,503km2, with water depths between 400-800m.
Inpex secured approval for the project from the Indonesian government in December 2023 following revisions incorporating CCS elements. Pertamina and Petronas, both experienced in oil and gas development within Indonesia, joined in October 2023.
