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INPEX signs MOUs regarding the Abadi LNG project

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LNG Industry,

INPEX Corp. has announced that through its subsidiary INPEX Masela, Ltd., and on behalf of its joint venture partner Shell Upstream Overseas Ltd., it has signed memorandums of understanding (MOUs) with PT PLN (Persero) (PLN) and with PT Pupuk Indonesia (Persero) (Pupuk Indonesia), each concerning the long-term domestic LNG and pipeline natural gas supply from the Abadi LNG project.

The agreements were signed in the presence of Arifin Tasrif, Minister for Energy and Mineral Resources of the Republic of Indonesia, in Jakarta on 19 February 2020.

Discussions will now commence regarding sales and purchase agreements for the long-term LNG and natural gas supply from the project, including: (a) LNG to natural gas-fired power plants operated by PLN, and (b) natural gas (150 million ft3/d) to a coproduction plant, which Pupuk Indonesia plans to construct.

The long-term supply of LNG and natural gas from the project is consistent with the Indonesian Government’s focus on optimising domestic natural resource utilisation and will provide significant contributions to Indonesia where gas demand continues to grow, including multiplier effects that will benefit the country, particularly in the eastern region.

The project is the first large scale integrated LNG development project operated by INPEX in Indonesia and follows on from the INPEX-operated Ichthys LNG project in Australia. The Abadi gas field features excellent reservoir productivity and contains significant resource volumes, raising expectations of efficient development and stable LNG production operations over the long-term.

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