Report: Indonesia to decide on Masela LNG development plan within two weeks

Indonesia is reportedly set to decide on the development of the Abadi gas field in the Masela block within the next couple of weeks. 

Luhut Pandjaitan, Indonesia’s coordinating maritime minister said, the discussions on the project capacity with Inpex and Shell are in progress, Reuters reports.

According to Pandjaitan, Inpex and Shell have proposed to increase the output from the field by four times above the initial plan.

The proposed onshore facility would have a production capacity between 7.5 mtpa and 9.5 mtpa.

In March this year, Indonesia’s president Joko Widodo, rejected the initial multi-billion dollar plan to develop a Floating LNG facility and instead instructed Inpex and Shell to re-propose a plan of development for the Abadi gas field based on an onshore LNG plant.

The initial plan of development was based on developing the gas field in Arafura Sea in stages and targeted the deployment of an FLNG plant with an annual processing capacity of 2.5 mtpa as the first stage of development.

The official added that the onshore facility will be developed on the islands of Aru or Saumlaki.

Inpex currently has a 65 percent operating interest in the Masela block where the Abadi gas field is located, while Shell holds the remaining 35 percent.

LNG World News Staff