Inpex Corp. signed a memorandum of understanding with PT Perusahaan Gas Negara Tbk (PGN) of Indonesia for supply of domestic LNG from Inpex’s Abadi gas field in the Indonesian sector of the Arafura Sea.
Inpex said discussions will now begin regarding definitive volumes and timetable for the LNG sales to PGN.
PNG, Indonesia’s national gas transmission company, owns the bulk of the country’s domestic gas infrastructure and is responsible for carrying out a gasification program.
Abadi field, first discovered in December 2000, lies 150 km offshore Saumlaki in the Tanimbar Islands and close to the maritime boundary with Australia. Water depth over the field is 400-800 m.
Following delays and plan changes, Inpex completed a feasibility study in late 2018 for a 9.5 million tonnes/year onshore plant at an undisclosed location. Production of 35,000 b/d of condensate is also expected.
The project also will supply 150 MMcfd of natural gas via pipeline to address local demand.
The development is expected to come on stream in 2027-2028. Total recoverable gas reserves for the field have been estimated at 20 tcf.
Inpex is operator or Abadi with 65% interest. Royal Dutch Shell currently holds the remaining 35%, but its interest has been put on the market with Shell expecting its divestment to be completed next year.