The Abadi LNG project continues to build momentum as one of Asia’s most significant upcoming LNG developments. INPEX’s latest update highlights solid progress across engineering, commercial, financing, and regulatory workstreams - reinforcing the project’s strategic importance in today’s shifting global gas landscape.

 

According to the Global LNG Database®, the project entered the Front-End Engineering and Design (FEED) phase in August 2025, with steady progress toward delivering the detailed cost estimates required to validate EPC bids by the end of 2026. This work is laying the foundation for a targeted Final Investment Decision in 2027.

 

INPEX said that commercial interest remains robust as it has received non-binding LOIs from potential LNG buyers in volumes exceeding planned production. In a market increasingly shaped by new supply from North America and the Middle East, Abadi stands out as one of the few large-scale LNG projects emerging from Asia - and buyer engagement reflects that. Term-sheet negotiations are now underway.

 

Financing preparations are also advancing. Upstream development will be funded primarily through equity, while downstream facilities will rely on loans. INPEX has strengthened upstream cash reserves, and lenders have provided positive early feedback on downstream financing, with formal engagement continuing alongside FEED.

 

Engagement with the Indonesian government is ongoing, with discussions focused on ensuring robust project economics and achieving a mid-teens IRR. These negotiations will continue throughout FEED as both sides align on fiscal and regulatory measures that support long-term project viability.

 

 

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