Japan's Inpex has crossed critical pre-FID milestones for its massive Abadi liquefied natural gas project in Indonesia, moving the $20 billion-plus development closer to sanction targeted for 2027.
Located in the remote Masela production sharing contract block near Indonesia's maritime border with Australia, the Abadi field is designed to produce 9.5 million tonnes per annum of LNG, 150 million cubic feet per day of pipeline gas for Indonesia's domestic market, and approximately 35,000 barrels per day of condensate at peak output.
The project aligns with Indonesia's national strategy to optimize domestic natural resource utilization while supplying growing energy demand across the Asia-Pacific region.
A major breakthrough came with Inpex reaching agreements in principle with four global and regional players for LNG offtake: BP, Indonesia's Perusahaan Gas Negara (PGN) and PLN Energi Primer Indonesia, and Shell Eastern Trading. These preliminary deals, which will cover a significant portion of Abadi's LNG production, are now advancing toward formal SPAs. Separately, Inpex has also secured a principle agreement with Indonesian fertiliser manufacturer Pupuk Indonesia for domestic pipeline gas supply, paving the way for a binding gas sales agreement (GSA).
Parallel engineering work is progressing at pace. FEED is underway for all key project packages, with dual consortia competing for the FPSO and onshore liquefaction facility contracts. Australia's Worley is leading FEED for the SURF, gas export pipeline and CCS pipeline packages. Tenders for two major EPCI contracts have already been launched, accelerating project delivery timelines.
The Abadi project is led by Inpex with a 65% operating stake, alongside partners Pertamina Hulu Energi (20%) and Petronas (15%). While Inpex targets FID in 2027, the Indonesian government has pushed for an earlier sanction by the end of 2026 to fast-track energy security and economic benefits for the country.
LNG AbadiLNG Inpex IndonesiaEnergy EnergyMegaprojects FPSO FEED CarbonCapture EnergySecurity NaturalGas OffshoreEnergy
Home
-
Exhibition
Exhibition OverviewExhibitor Center -
Conference
-
Media Center
-
About Us
Days Countdown