Inpex pens Abadi LNG supply deals
Japan’s Inpex Corporation, through its unit Inpex Masela, has signed agreements for the long-term domestic LNG and pipeline natural gas supply from the Abadi LNG project.
The memorandums of understanding (MOUs), signed also on behalf of its joint venture partner Shell, were inked with PT PLN and with PT Pupuk Indonesia, Inpex said in its statement.
Discussions will now commence regarding sales and purchase agreements for the long-term LNG and natural gas supply from the project including LNG to natural gas-fired power plants operated by PLN and 150 million cubic feet per day of natural gas to a coproduction plant, which Pupuk Indonesia plans to construct.
The long-term supply of LNG and natural gas from the project is consistent with the Indonesian Government’s focus on optimizing domestic natural resource utilization and will provide significant contributions to Indonesia where gas demand continues to grow, including multiplier effects that will benefit the country, particularly in the eastern region, the statement reads.
The Abadi LNG project is the first large-scale integrated LNG development project operated by Inpex in Indonesia and follows on from the Inpex-operated Ichthys LNG project in Australia.
The Abadi gas field features excellent reservoir productivity and contains significant resource volumes, raising expectations of efficient development and stable LNG production operations over the long-term.