INPEX has received written approval for the revised Plan of Development (POD) for the Abadi LNG Project on behalf of the joint venture composed of INPEX Masela, Pertamina Hulu Energi Masela (PHE Masela) and PETRONAS Masela. INPEX, which operates the Project through its subsidiary INPEX Masela, submitted a revised POD to Indonesian government authorities on April 4, 2023, incorporating a carbon capture and storage (CCS) component to the existing POD. This marks the official approval of the authorities for the revised POD.
The Project is the first in which CCS-related costs are eligible for recovery based on the production sharing contract (PSC) scheme that governs crude oil and natural gas upstream operations in Indonesia. The approval of the revised POD paves the way for INPEX and its partners to fully mobilize the Project as a clean project in support of the energy transition.
Going forward, INPEX and its partners will pursue the revision of the PSC to incorporate CCS into the contractual scope of work and resume Project operations including on-site activities and prepare for FEED work. Thereafter, the joint venture will implement the Project with the aim of reaching a final investment decision (FID) and production startup at an early stage after completing the necessary preparations including marketing and financing activities.
The Project’s annual LNG production volume is expected to reach 9.5 million tons, equivalent to more than 10 percent of Japan's annual LNG imports. The Project is expected to contribute to improving energy security in Indonesia, Japan and other Asian countries and generate a stable supply of clean energy over the long term, based on its world-leading gas field properties and plentiful reserves enabling efficient development as well as the Project’s CCS component.
In addition, the Project is expected to contribute significantly to the much-needed economic development of the eastern part of Indonesia in particular, and to achieving Indonesia’s goal of reaching net zero CO2 emissions by 2060.
Items raised in this announcement have no impact on INPEX’s consolidated financial results.
Source: INPEX
