Abadi FLNG Terminal

This article is part of the Global Fossil Infrastructure Tracker, a project of Global Energy Monitor.

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Abadi FLNG Terminal is a proposed LNG terminal in Indonesia. It is also referred to as the Masela LNG Project.

Location

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Project Details

• Operator: INPEX Masela Ltd
• Owner: INPEX Masela Ltd
• 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
• FID status: Pre-FID (2026 at earliest)
• Start Year: 2030

Note: mtpa = million tonnes per year; bcfd = billion cubic feet per day

Background

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 FLNG 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.

In August 2021, Inpex said that it would delay FID to 2024-2025 due to the Covid-19 pandemic and considerations related to climate change, such as redesigning the facility to include carbon capture and storage (CCS).

In May 2022, Inpex announced that it would delay FID again to the latter half of the decade. Shell is still trying to sell its 35% stake in the project.