INPEX Moves Closer to FID with Abadi LNG Offtake Deals

INPEX reached preliminary LNG and pipeline gas supply agreements tied to Indonesia’s Abadi LNG project as the company advances toward a final investment decision.

(P&GJ) — INPEX has reached preliminary agreements with several buyers for liquefied natural gas and pipeline gas supplies tied to the Abadi LNG project in Indonesia’s Masela Block, marking another step toward a final investment decision on the development.

The Japanese energy company said it signed agreements in principle with bp, PT Perusahaan Gas Negara, PT PLN Energi Primer Indonesia and Shell Eastern Trading for LNG offtake volumes from the project.

INPEX also reached a separate agreement in principle with PT Pupuk Indonesia related to pipeline natural gas supply from the offshore development.

The announcements were made during the Indonesian Petroleum Association Convention and Exhibition near Jakarta.

According to INPEX, the agreements are expected to support negotiations toward long-term sale and purchase agreements covering a significant share of the project’s anticipated LNG production capacity.

The company said the discussions align with Indonesia’s efforts to expand domestic utilization of natural gas resources while also supporting growing energy demand across the Asia-Pacific region.

INPEX is advancing the Abadi LNG project through its subsidiary INPEX Masela alongside partners PT Pertamina Hulu Energi and PETRONAS Masela.

The Abadi gas field is expected to support long-term LNG and pipeline gas production from offshore Indonesia.