INPEX has said that the Japanese operator and its new partners at the Indonesian Abadi LNG project, Pertamina and Petronas, aim to achieve an IRR “in the mid 10% range”.
INPEX has said that the Japanese operator and its new partners in the Indonesian Abadi LNG project, Pertamina and Petronas, aim to achieve an IRR “in the mid 10% range” and to run a “competitive and clean project” through “comprehensive cost optimization” and carbon capture and storage (CCS) component.
They also expect the project’s commerciality to be increased through FEED period and intend to re-evaluate the project economics with Indonesian government based on FEED results.
According to the
Global LNG Database®, INPEX has submitted a revised Plan of Development (POD) for Abadi LNG project incorporating a CCS component to Indonesian government.
The Japanese operator expects to accelerate activities associated with the LNG project, including various on-site activities, and prepare to begin FEED work subject to the authorities’ approval of the revised POD and taking into account other circumstances concerning the project’s development status.
INPEX also plans to complete the necessary preparations including marketing and financing activities and proceed with the project aiming to reach a final investment decision (FID) in the middle of 2020s and commence production in the early 2030s.
Shell has recently agreed to sell its participating interest in Masela block PSC which includes the Abadi gas development project to Indonesia’s PT Pertamina and Malaysian Petronas.
The original shareholders of the 9.5 MMT/Y Abadi LNG export project (including Masela gas field development) were INPEX (operator) 65% and Shell Upstream Overseas Services (Shell) 35%. Under the new agreement, Pertamina and Petronas take 20% and 15% stake in the project, respectively.
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