Japan’s Inpex delays FID on Indonesia’s Abadi LNG
Japan’s oil and gas producer Inpex will delay the final investment decision (FID) on Indonesia’s Abadi LNG project due to pandemic and climate change adjustments.
Inpex is behind the development of the $20 billion Abadi LNG project, also known as the Masela gas project. Namely, Inpex controls 65 per cent of the project.
The initial plan from 2019 was to wrap up the FID in three to four years.
Reuters reported that the delay will occur because COVID-19 has disrupted survey work. Also, additional adjustments may be needed due to climate change.
Previously, the Japanese company planned to start front-end engineering design (FEED) on the project in 2020. LNG production was supposed to be running by 2027-2028. But, this has also been suspended due to the pandemic in Indonesia.
Additionally, Inpex is considering adding carbon capture and storage (CCS) or carbon capture utilisation and storage (CCUS) to the Abadi LNG.
The project witnessed many changes over the years.