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    Inpex Inks Abadi LNG Supply MoUs

Summary

Inpex owns a 65% stake in the Masela block while Shell holds the remaining 35% interest.

by: Shardul Sharma

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Natural Gas & LNG News, Asia/Oceania, Liquified Natural Gas (LNG), Security of Supply, Corporate, Exploration & Production, Import/Export, News By Country, Indonesia

Inpex Inks Abadi LNG Supply MoUs

Japan’s Inpex signed memoranda of understanding (MoUs) February 19 on long-term domestic LNG and piped gas supply from its Abadi LNG project in Indonesia, it said the following day in a statement.

Inpex subsidiary Inpex Masela signed the MoUs on behalf of its joint venture partner Shell with state-run utility Perusahaan Listrik Negara (PLN) and with state-run fertiliser company Pupuk Indonesia.

Inpex said discussions will now commence regarding sales and purchase agreements for the long-term LNG and natural gas supply from the project including LNG to gas-fired power plants operated by PLN and 150mn ft3/day of gas to a coproduction plant which Pupuk plans to construct.

“The long-term supply of LNG and natural gas from the project is consistent with the Indonesian government’s focus on optimising domestic natural resource utilisation and will provide significant contributions to Indonesia where gas demand continues to grow, including multiplier effects that will benefit the country, particularly in the eastern region,” Inpex said.

Inpex owns a 65% stake in the Masela block while Shell holds the remaining 35% interest. The partners are preparing to start front-end engineering design (Feed) work at Abadi LNG, due to export up to 9.5mn mt/yr of LNG, in order to take a final investment decision. Wood Mackenzie forecasts that the $20bn project will yield its first gas in 2028.