Page 4 - AsianOil Week 39 2022

AsianOil COMMENTARY AsianOil

Indonesia’s Abadi LNG project

faces further delay as INPEX

makes new studies

The delay is due Inpex conducting new studies to determine the feasibility of

hydrogen and ammonia production as well as CCS.

INDONESIA INDONESIA’S Abadi LNG project will see fur- In recent weeks, the Indonesian government
ther delays in its implementation as operator has said it is looking to form a consortium com-
WHAT: INPEX of Japan conducts new studies designed prised of Pertamina, the Indonesian Investment
Abadi LNG is set for to determine the feasibility of hydrogen and Authority and other companies that would take
further delays. ammonia production as well as carbon capture over Shell’s stake. INPEX holds 65% of Abadi
and storage (CCS). The project, also known as LNG.
WHY: Masela LNG, was previously delayed when the The facility will likely be located in the Tanim-
The project was set to original plan to develop it as a floating LNG bar Islands in Maluku Province. Discovered in
start up in 2027, but a (FLNG) project was changed to an onshore pro- 2000, the Abadi gas field in located some 150 km
final investment decision ject according to a plan that was approved by the from the islands and after nine appraisal wells
has not been taken yet. Indonesian government in 2019, with an opera- is estimated to hold 12 trillion cubic feet (340bn
tional target of 2027. cubic metres) of proven natural gas reserves at
WHAT NEXT: Also, as with most other projects worldwide, depths of 3,700-3,900m. The project involves the
The delay could mean the coronavirus (COVID-19) pandemic caused development of the Abadi gas field in the Masela
Indonesia misses its a significant delay by the interruption of survey Block in the Arafura Sea and construction of an
production targets. work. onshore LNG terminal with a capacity to pro-
With the decision to conduct new studies cess 9.5mn tonnes per year (tpy). The plan also
designed to qualify the project in accordance allows for the delivery of gas by pipeline to local
with energy transition objectives, it is unclear customers and the production of 36,000 barrels
as to when INPEX will make a final investment per day (bpd) of condensate.
decision (FID), but one is tentatively anticipated Indonesian authorities are expecting to
later this decade. receive a new plan from INPEX including the
Furthermore, Shell, which is INPEX’s part- costs for CCS and hydrogen/ammonia produc-
ner with a 35% stake in the $20bn project, has tion in the coming months, but that will depend
announced that it wants to divest from its share. on how smoothly the studies go.

P4 www. NEWSBASE .com Week 39 05•October•2022