TOKYO, JAPAN — INPEX subsidiary INPEX Masela has submitted a revised plan of development (POD) for the Abadi LNG project offshore/onshore Indonesia to the country’s government authorities.
The new plan, prepared with the agreement of partner Shell, incorporates carbon capture and storage (CCS).
In February 2022, INPEX announced a new strategy to achieve net-zero emissions by 2050. The company has since sought to ensure the Abadi project’s competitiveness and sustainability in the long term, and to be capable of responding to changes in the external environment.
The revised POD includes plans to neutralize all CO2 emitted from natural gas production at the Abadi offshore gas field via CCS.
Last month, Indonesia’s government enacted a Ministerial Regulation of Energy and Mineral Resources on carbon capture, utilization and storage (CCUS) in the oil and gas business.
Abadi LNG will likely become the first CCS project enacted as a cost recovery business, INPEX said, based on the production sharing contract framework governing upstream oil and gas projects in Indonesia.
It expects to sequentially resume activities associated with the project, including various onsite activities, and to start FEED work subject to approval of the revised POD and other circumstances concerning the project’s development status.
All being well, FID should follow in the second half of the 2020s with first gas produced in the early 2030s. Projected annual LNG production volumes should reach 9.5 MM t, equivalent to more than 10% of Japan's annual LNG imports.
It would also be the company’s second operated large-scale natural gas development project following Ichthys LNG offshore northwest Australia.