Indonesia’s government approved the revised of Plan of Development (PoD) on The Abadi liquefied natural gas (LNG) project on the Masela block. In addition to the revised PoD, Indonesia’s government is also approved the application for a seven-year additional time allocation and a 20 years extension to the production sharing contract (PSC) for the Masela Block until 2055. The revised of PoD is due to the project’s development concept has been changed from a floating LNG scheme to an onshore LNG scheme.
The approval is a positive move forward for the project. The PoD approval will be followed by FEED project development towards final investment decision. Inpex, in cooperation with its partner Shell is set to begin the preparations to commence front-end engineering design (FEED) for the Abadi LNG development in Indonesia. Japanese firm Inpex owns 65% of the license, with the remaining 35% held by Shell.
The Abadi LNG is planned to have an annual LNG production capacity of 9.5 million tons per year (Mtpa). The project development is estimated will cost between $18 billion and $20 billion, with first gas expected in 2027.The Masela block is estimated to contain 10 trillion cubic feet (Tcf) of natural gas in place.