Abadi LNG Terminal
|This article is part of the Global Fossil Infrastructure Tracker, a project of Global Energy Monitor.|
Abadi LNG Terminal is a proposed LNG terminal in Indonesia. It is also referred to as the Masela LNG Project.
- Parent: Inpex (65%), Shell (35%)
- Location: Masela Block, Adabi gas field, Indonesia
- Coordinates: -9.082283, 131.319732 (approximate)
- Capacity: 9.5 mtpa, 1.36 bcfd
- Cost: US$20 billion.
- Status: Proposed
- Type: Export
- Start Year: 2028
Note: mtpa = million tonnes per year; bcfd = billion cubic feet per day
In December 2010, Indonesian authorities approved the initial plan of development deploying a floating LNG (FLNG) plant with an annual processing capacity of 2.5 million tons. In September 2015 Inpex submitted a revised plan to the Indonesian authorities for an FLNG plant with an annual processing capacity of 7.5 million tons. In April 2016, Inpex received a notification from the Indonesian authorities instructing it to re-propose a plan of development based on onshore LNG.
The Indonesian government's instructions to re-purpose the plan for an onshore LNG terminal came right after Inpex announced they are delaying development of the project by at least two years. Inpex delayed the final investment decision on the project to 2020, ultimately delaying the project's operation date until at least 2026. In July 2019 Inpex announced that it had received government approval for the revised plan of development (POD) for the Abadi LNG Project submitted on 20 June 2019. The project will cost an estimated US$20 billion.
In February 2020, Inpex announced memorandums of understanding (MOU's) with PT PLN Persero and PT Pupuk Indonesia for the purchase of gas from the Abadi LNG Terminal. In March 2020 Inpex began a review of its investment plans for the terminal and other gas projects because of the global oil price collapse caused in large part by the Covid-19 pandemic. One upshot of this review may be a delay on the project's final investment decision (FID). IJGlobal reported that the FID date may be pushed back from mid-2021 to mid-2022. Sumitomo Mitsui Banking Corporation has been appointed as the project's financial advisor.
Following Shell's July 2020 announcement that it planned to exit the project and divest its 35% stake, IJGlobal reported in May 2021 that the Indonesian government was actively looking for investors to acquire Shell's stake in Abadi gas field and LNG terminal by the end of 2021. According to a government official, the project would likely face further delays if Shell's divestment did not happen.
Articles and resources
- Inpex, Indonesian government sign Abadi LNG development agreement, Reuters, Jun. 16, 2019
- Abadi LNG location decided, Upstream Online, Dec. 31, 2018
- Indonesia approves Inpex's plan for $20 billion Masela LNG project, Reuters, Jul. 12, 2019
- Annual Report, GIIGNL, 2020
- Abadi LNG Terminal, Inpex Corporation website, accessed April 2017
- Indonesian regulator says Inpex to postpone Abadi LNG project, LNG World News, 17 March 2016
- INPEX receives Indonesian government approval for Abadi LNG Project, Hydrocarbon Engineering, Jul. 22, 2019
- Will Owens, INPEX signs MOUs regarding the Abadi LNG project, LNG Industry, Feb. 20, 2020
- Amanda Battersby, Abadi and Ichthys LNG projects in doubt as Inpex reviews spending, Upstream Online, Mar. 25, 2020
- Abadi LNG faces cost review, IJGlobal, Apr. 23, 2020
- Civi Yap, [https://ijglobal.com/articles/155661/indonesia-pressures-shell-to-divest-abadi-gas Indonesia pressures Shell to divest Abadi gas], IJGlobal, May 31, 2021