Japan’s largest exploration and production (E&P) firm Inpex has received environmental approval from the Indonesian government for its Abadi liquefied natural gas (LNG) project in the Masela Block, marking a key milestone as the development moves through the front-end engineering and design (FEED) phase.
The approval, granted under Indonesia’s Environmental and Social Impact Assessment framework known locally as AMDAL, covers core elements of the project, including drilling operations, construction and operation of production and processing facilities, and the onshore natural gas liquefaction plant.
Inpex, through its subsidiary Inpex Masela, plans to progressively start preparatory work at the project site following the approval, while coordinating with the Indonesian government, local authorities and surrounding communities.
The Abadi LNG project is expected to produce approximately 9.5 million tonnes of LNG per year, equivalent to more than 10% of Japan’s annual LNG imports. Total natural gas output is projected at 10.5 million tonnes per year (LNG equivalent), including pipeline gas for domestic supply and up to 35,000 barrels of condensate per day.
Located 170 - 180 km southwest of the Tanimbar Islands Regency in water depths of 400–800 metres, the block covers approximately 2,503 square kilometres. The production sharing contract runs until Nov. 15, 2055.
Inpex Masela holds a 65% participating interest and serves as operator, alongside PT Pertamina Hulu Energi Masela with 20% and Petronas Masela with 15%.
The project has been designated by the Indonesian government as a national strategic project since June 2017 and a priority infrastructure project since September 2017.
Inpex said the environmental approval, together with ongoing FEED work, is expected to support expansion of its natural gas and LNG business and contribute to lowering its greenhouse gas emissions in line with its Vision 2035 strategy. The development includes a carbon capture and storage (CCS) component and is intended to support long-term energy security in Indonesia, Japan and other Asian markets.