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    Inpex Agrees on Abadi LNG Supply to Indonesia


Inpex and its partner Shell are building up a domestic customer base for the project's gas.

by: Joe Murphy

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Natural Gas & LNG News, Asia/Oceania, Liquefied Natural Gas (LNG), Premium, Corporate, Import/Export, News By Country, Indonesia

Inpex Agrees on Abadi LNG Supply to Indonesia

Japan's Inpex has signed a memorandum of understanding (MoU) to sell LNG from the Adabi LNG project to Indonesian gas utility PT Perusahaan Gas Negara (PGN), it said on December 4.

The two sides will now work on reaching a sales and purchase contract for the gas. PGN is the country's largest gas company, with control over most domestic gas infrastructure. Inpex also signed MoUs in February to sell the project's gas to state power firm PT Perusahaan Listrik Negara and fertiliser manufacturer PT Pupuk Indonesia.

Indonesian authorities approved Inpex's revised development plan for Abadi LNG, situated at the Masela block in the Arafura sea, last year. Due online in 2028, the $20bn project is expected to produce 9.5mn metric tons/year of LNG, 150mn ft3/day of pipeline gas for domestic supply and 35,000 barrels/day of condensate.

Inpex has a 65% interest in the project, while Shell has 35%. The latter was reported earlier this year to be seeking a divestment.