Abadi LNG Project Overview

The Abadi LNG project, operated by Japan's Inpex, is a $20 billion-plus development located on the Masela production sharing contract near Indonesia's maritime border with Australia. The project is designed to produce 9.5 million tonnes per annum of LNG, along with 150 million cubic feet per day of pipeline gas for the domestic market and approximately 35,000 barrels per day of condensate at peak production.

Project Timeline and Sanction

The operator is targeting a final investment decision (FID) in 2027, though the Indonesian government is pushing for FID before the end of the year. Front-end engineering and design (FEED) work is ongoing for key packages, and tenders have been launched for two major engineering, procurement, construction, and installation contracts.

LNG Offtake and Gas Sales Agreements

Inpex has reached agreements in principle with four companies—BP, Perusahaan Gas Negara (PGN), PLN Energi Primer Indonesia, and Shell Eastern Trading—to offtake LNG volumes from Abadi. The operator will now work toward finalizing sales and purchase agreements (SPAs) with these prospective customers, which are expected to account for a "significant portion" of the project's anticipated LNG production. Additionally, Inpex has reached an agreement in principle with fertilizer manufacturer Pupuk Indonesia regarding pipeline natural gas supply, expected to lead to a gas sales agreement (GSA). These agreements align with the Indonesian government's focus on optimizing domestic natural resource utilization and supporting energy demand growth across the Asia-Pacific region.

FEED Work and Contractors

Parallel FEED work is being conducted for the Abadi FPSO by two consortia: one led by Technip Energies with Technip Indonesia and JGC Indonesia, and the second comprising Saipem Indonesia, Tripatra Engineers & Constructors, Tripatra Engineering, and McDermott Indonesia. Dual FEED for the onshore liquefaction (OLNG) facility is being carried out by a pairing of JGC with Technip Engineering Indonesia, and a grouping of KBR Indonesia with Samsung E&A and Adhi Karya. Australia's Worley is leading the FEED for Abadi's SURF, gas export pipeline, and carbon capture and storage pipeline packages.

Project Partners

The partners in the Abadi project are operator Inpex with a 65% stake, Pertamina Hulu Energi with 20%, and Petronas with 15%.