Japanese explorer Inpex has completed the planning and engineering phase of its Abadi LNG project at Indonesia's Masela gas block, an official said on Tuesday, reaching a milestone in the Southeast Asian nation's biggest gas project.
Inpex Masela, its subsidiary, will focus on reaching the final investment decision for the project, its president director Kenji Hasegawa said in a ceremony marking completion of the front-end engineering design phase.
Djoko Siswanto, chairman of Indonesia's upstream oil and gas regulator SKK Migas, said he hoped for a final investment decision by January 2027 at the latest.
Investment in the project could reach $22 billion, above Inpex's latest estimate of $21 billion, Djoko said.
Inpex's discovery of gas in the Masela block was first announced in 2000.
Its development has been delayed due to factors that include a request for design changes by a previous government, the pandemic, and a plan to incorporate a carbon-capture facility.
Ground-breaking took place in July, when President Prabowo Subianto said he expected the project to be delivered as soon as possible.
Inpex aims to start production in early 2030 but the government has sought earlier delivery.
(Reuters - Reporting by Fransiska Nangoy; Editing by Martin Petty)