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Inpex and Shell still expected to invest in Indonesian LNG plant

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LNG Industry,

According to Reuters, Inpex Corp. and Royal Dutch Shell are still expected to invest in the construction of an onshore LNG plant in Indonesia. This is despite the recent news that Indonesia had decided not to proceed with a floating LNG (FLNG) facility instead.

Internal disagreement regarding whether to proceed with FLNG or an onshore plant caused a lack of decision making. Nonetheless, Joko Widodo, the President of Indonesia, recently said: “This is a long-term project that concerns hundreds of trillions of rupiah. From these calculations, we have decided to build it onshore.”

Amien Sunaryadi, the Head of Indonesia’s SKKMigas, reportedly said: “Inpex and Shell have no plan to withdraw from the Masela block. They will stay, but they need time to redo their plan for onshore.”

Edited from various sources by David Rowlands

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