INPEX Masela Ltd. submitted a revised plan of development (POD) for the Abadi LNG project in Masela block, Indonesia, incorporating a carbon capture and storage (CCS) component to Indonesian government authorities on behalf of the joint venture composed of INPEX and Shell.
INPEX amended the revised POO to include plans to neutralize all CO2 emitted from natural gas production at Abadi gas field through the introduction of CCS, the company said in a release Apr. 6.
In March 2023, Indonesia enacted a Ministerial Regulation of Energy and Mineral Resources on CCS-CCUS in the oil and gas business. Accordingly, the Abadi LNG project is expected to be the first CCS project to be carried out as a cost recovery business based on the production sharing contract framework governing upstream oil and gas projects in Indonesia, the company said.
Going forward, INPEX expects to sequentially resume activities associated with the project, including various on-site activities, and prepare to begin FEED work subject to the authorities’ approval of the revised POD. Thereafter, INPEX expects to complete certain preparations including marketing and financing activities. Final investment decision (FID) is expected in the latter half of the 2020s with production expected to begin in the early 2030s.
The LNG project, with an annual projected production volume of 9.5 million tonnes, is expected to be INPEX’s second self-operated, large-scale natural gas development project following the Ichthys LNG project in Australia.
