$20 billion Asian LNG project moves forward with environmental clearance

February 20, 2026, by Melisa Cavcic

An environmental approval is paving the way for the development of a liquefied natural gas (LNG) project in Indonesia’s Masela block, which is expected to play a significant role in Asia’s energy security.

Inpex Masela, a joint venture between Inpex and the Japan Organization for Metals and Energy Security (JOGMEC), has received environmental approval for the Abadi LNG project from the government of Indonesia based on the environmental and social impact assessment.

The approval for the LNG project, which is currently in the front-end engineering and design (FEED) stage, covers the core elements of the project from drilling operations to the construction and operation of production and processing facilities, as well as the natural gas liquefaction plant, marking what is perceived to be a significant milestone in the development of the project.

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With this approval in place, Inpex plans to progressively begin preparatory work at the project site, while securing the understanding and cooperation of the Indonesian government, relevant local authorities and surrounding communities. The project’s annual LNG production volume is expected to reach 9.5 million tons, equivalent to more than 10% of Japan’s annual LNG imports.

According to the operator, the project is expected to contribute to improving energy security in Indonesia, Japan and other Asian countries and generate a stable supply of low-carbon energy over the long term, based on its gas field properties and reserves enabling efficient development as well as the project’s carbon capture and storage (CCS) component.

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The 20 billion project envisions an annual natural gas production capacity of 10.5 million tons of gas equivalent, with roughly 9.5 million tons of this expected to be LNG. The condensate production is estimated to reach up to 35,000 barrels per day.

Inpex Masela is the operator of the Abadi LNG project with a 65% interest. The firm’s partners are Pertamina (20%) and Petronas (15%), following Shell’s exit as the oil major opted to sell its stake in 2023. The production sharing contract (PSC) is valid until November 15, 2055.

This project is anticipated to contribute significantly to the economic development of the eastern part of Indonesia in particular and help achieve the country’s goal of reaching net zero CO2 emissions by 2060.

Inpex expects the environmental approval of the Abadi LNG project, together with the FEED work, to contribute to the expansion of its natural gas and LNG business, and reduction of its own GHG emissions.