• 4 minutes Drone attacks cause fire at two Saudi Aramco facilities, blaze now under control
  • 7 minutes China Faces Economic Collapse
  • 13 minutes Oil Production Growth In U.S. Grinds To A Halt
  • 15 minutes Iran in the world market
  • 18 minutes Ethanol, the Perfect Home Remedy for A Saudi Oil Fever
  • 1 min USA Wants Iran War -- Shooty Shooty More
  • 2 hours USA : Attack came from 'Iranian soil'. Pompeo to release 'evidence'.
  • 1 hour Collateral Damage: Saudi Disruption Leaves Canada's Biggest Refinery Vulnerable
  • 8 hours Never Bring A Rapier To A Gun Fight
  • 11 hours Bahrain - U.S.: Signed Deal To Buy Patriot Missiles
  • 2 hours Yawn... Parliament Poised to Force Brexit Delay Until Jan. 31
  • 12 hours One of the fire satellite pictures showed what look like the fire hit outside the main oil complex. Like it hit storage or pipeline facility. Not big deal.
  • 11 hours Trump Will Win In 2020 And Beyond..?
  • 12 hours How OPEC and OECD play their role in setting oil price in light of Iranian oil sanction ?? Does the world agree with Iran's oil sanctions ???
  • 7 hours Aramco Production
  • 10 hours Democrats and Gun Views
Yergin: Expect Extreme Volatility In Oil Markets

Yergin: Expect Extreme Volatility In Oil Markets

Supply and demand issues and…

Inpex Signs Deal To Develop $20B LNG Project In Indonesia

LNG vessel

Japan’s Inpex Corporation said on Monday that it had signed a heads of agreement with Indonesia’s government to develop a US$20-billion liquefied natural gas (LNG) project in Indonesia after changing the development plan—potentially reviving a project that has already faced years of delays.

The Abadi LNG Project has been delayed by at least two years and the government of Indonesia has instructed the project developers to change their initial proposal for a floating LNG platform to onshore LNG development. Inpex Corporation is the operator and the majority holder with a 65-percent stake in the project, while a subsidiary of Shell owns the other 35 percent.

As early as in March 2016, the Indonesian energy regulator said that Inpex would be delaying the final investment decision on the project until 2020, meaning that the project would not come online until 2026 at the earliest.

In March last year, Inpex said that it was about to begin pre-FEED work for the project and will draft a detailed revised plan of development after the authorities instructed the company in 2016 to change its plans from floating LNG platform to onshore LNG development.

After discussions with the Indonesian government, Inpex signed today the heads of agreement with the endorsement of Shell after “the completion of Pre-FEED work on a revised POD to achieve an economically competitive project.”

The Abadi project is expected to have annual production of 9.5 million tons of LNG and to cost between US$18 billion and US$20 billion, Indonesia’s energy ministry said.

The final investment decision for the Abadi project is expected in two or three years, with potential production start-up in the latter half of the 2020s, Bloomberg quoted INPEX’s president and chief executive Takayuki Ueda as telling reporters on Sunday.

Last year, Inpex started production and exports from the US$40-bllion Ichthys LNG project offshore Western Australia, in which France’s major Total is a minority partner.  

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play