Japan's largest exploration and production (E&P) company Inpex and Indonesia's national energy company PT Pertamina (Persero) have extended a memorandum of understanding (MoU) to advance the US$20bn Abadi liquefied natural gas (LNG) project in the Arafura Sea. Amid global energy security concerns, the Indonesian government is keen to accelerate the development, which has an expected annual production capacity of 10.5m tonnes of gas equivalent. This includes 9.5m tonnes of LNG, 150m cubic feet per day of pipeline gas for local customers and up to 35,000 barrels per day (b/d) of condensate.
Inpex, which operates the project with a 65% interest alongside joint venture partners Pertamina (20%) and Petronas (15%), has already launched key engineering, procurement and construction (EPC) tenders. Front end engineering and design (FEED) studies are scheduled for completion in the third quarter of this year. Furthermore, Inpex has signed a new MoU with Pertamina Hulu Energi (PHE) to collaborate on upstream activities across South East Asia, supporting the expansion of its natural gas business outlined in the company's Vision 2035 strategy.
Track the progress of the Abadi LNG project in EICDataStream today.