Inpex could triple Masela FLNG’s capacity
Due to a likely increase in recoverable gas reserves, Inpex of Japan revealed plans to up the FLNG plant’s capacity from 2.5 million metric tons per year to 7.5 mtpa.
According to Rudi Rimbono, head of communication division at SKK Migas, the increase in recoverable resources has not yet been certified but, Inpex could revise its development plans for the floating LNG plant at Indonesia’s offshore Masela block and triple the initially planned capacity, Platts reports.
Proven gas reserves at the Masela block are expected to double to 12 Tcf from previous estimate of 6 Tcf.
The FLNG project is expected to start production in 2018, and the front-end engineering and design for the development of the Abadi field, that is to be used as source for the project, has been completed in November last year. The Abadi field gas reserves were sufficient for the initially proposed production of 2.5 million metric tons per year.
Currently, Inpex is in negotiations with the government of Indonesia to extend the production sharing contract for the Masela block for further 20 years. The current PSC will expire in 2028 and is not enough for the company to make a return on its investment.
The startup of Masela, in which Inpex as operator owns 65%, with Shell owning the rest, could be pushed back to 2020.
LNG World News Staff; Image: Inpex