Inpex Corporation, on behalf of its joint venture with Shell, has submitted a new Plan of Development (PoD) for the Abadi LNG project to the Indonesian authorities. This time, the PoD includes a carbon capture and storage (CCS) component.
Since February 2022, and the presentation of its net zero strategy, Inpex has been discussing with the authorities the competitiveness and long-term sustainability of the project. The CCS component will make the project clean and able to respond to changes in the external environment, Inpex said in its statement.
In addition, other circumstances facilitating the implementation of the project have been restored, allowing the submission of the revised PoD at this time.
In March 2023, Indonesia enacted a Ministerial Regulation of Energy and Mineral Resources on Carbon Capture, Use and Storage (CCS/CCUS) in the oil and gas business. Accordingly, the project is expected to be the first CCS project to be undertaken as a cost recovery business based on the production sharing contract framework that governs oil and gas projects in Indonesia, Inpex said .
Going forward, Inpex said it expects to sequentially resume activities associated with the project, including various on-site activities, and prepare to commence FEED work subject to authorities’ approval of the revised PoD and taking into account other related circumstances with the development status of the project. .
Subsequently, Inpex expects to complete the necessary preparations, including marketing and financing activities, and proceed with the project with the aim of reaching a Final Investment Decision (FID) in the second half of the 2020s and start production in the early 2030s.
The project is expected to be Inpex’s second self-operated large-scale natural gas development project after the Ichthys LNG project in Australia. Inpex expects the project’s annual LNG production volume to reach 9.5 million tonnes, which it says is equivalent to more than 10 percent of Japan’s annual LNG imports.
The Abadi gas field is expected to contribute to improving energy security in Indonesia, Japan and other Asian countries, based on its world-leading gas field properties and abundant reserves that enable efficient development and its CCS component that enables the stable supply of clean energy over the long-term period, Inpex noted.
In addition, the project is expected to contribute significantly to the much-needed economic development of the eastern part of Indonesia, in particular, and to achieving Indonesia’s goal of achieving net zero CO2 emissions by 2060, he says the statement
To contact the author, please email andreson.n.paul@gmail.com
