Japan’s Inpex has signed agreements in principle with multiple companies for the offtake of liquefied natural gas (LNG) from the Abadi LNG Project in Indonesia’s Masela Block.
The companies that signed the agreements are bp, Perusahaan Gas Negara, PLN Energi Primer Indonesia and Shell Eastern Trading.
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Inpex also entered into a preliminary agreement with Pupuk Indonesia (Persero) for pipeline natural gas supply from the same project.
The Japanese company is the operator of the Abadi LNG Project through its subsidiary Inpex Masela.
The announcement of this development was made during the Indonesian Petroleum Association Convention near Jakarta.
Inpex is collaborating on the Indonesian project with joint venture partners Pertamina Hulu Energi and Petronas Masela.
Pertamina and Petronas joined as partners in October 2023, contributing their expertise in oil and gas.
Finalising sale and purchase agreements with potential customers is expected to cover a substantial portion of the project’s projected LNG output.
These agreements mark an important milestone towards a final investment decision.
The pipeline gas supply agreement is also expected to lead to a gas sales agreement.
The agreements align with the Indonesian Government’s objective of optimising domestic resource utilisation and are expected to address energy demand growth across the Asia-Pacific region.
The Abadi Gas Field’s resources are set to facilitate efficient development and stable production long-term.
Inpex first acquired the Masela Block in 1998 and discovered the Abadi Gas Field in 2000.
An initial development plan to produce 9.5 million tonnes per annum (mtpa) of LNG was approved in 2019, with revisions incorporating carbon capture and storage approved in December 2023.
In February 2026, Inpex obtained environmental approval from the Indonesian Government for the project.
This approval allows the company to move forward with drilling, construction, and operation of production and processing facilities, along with the establishment of a natural gas liquefaction plant.
The project aims to liquefy natural gas from the Abadi Gas Field at an onshore facility. It is targeting LNG production of approximately 9.5mtpa, up to 35,000 barrels of condensate daily and around 150 million cubic feet of natural gas per day.
