The Abadi LNG project in the Masela block, operated by INPEX Masela, Ltd., has reached a new milestone with the award of the final Front End Engineering and Design (FEED) contract for its onshore natural gas liquefaction plant. This decision completes the set of four FEED packages already allocated for the floating production, storage and offloading platform (FPSO), subsea facilities (SURF), and the gas export pipeline (GEP).
Selection strategy and involved consortiums
The OLNG plant contract is being awarded through a dual FEED scheme, involving two distinct consortiums: the first brings together PT JGC Indonesia and PT Technip Engineering Indonesia, while the second combines PT KBR Indonesia, Samsung E&A Co. Ltd., and PT Adhi Karya (Persero) Tbk. Each consortium works in parallel to define the technical and commercial specifications, and the group delivering the most competitive solution will be assigned the Engineering, Procurement and Construction (EPC) phase.
This dual FEED model, already selected for the FPSO, aims to stimulate competition and optimise technical quality while containing costs. The other packages, including SURF and GEP, have been awarded to PT Worley SEA Indonesia. All FEED packages include a component for carbon capture and storage (CCS).
Production capacity and economic impacts
The project aims for an annual production of 9.5 million tonnes of liquefied natural gas, representing more than 10% of Japan’s annual imports, in addition to local gas supply by pipeline and condensate volumes reaching 35,000 barrels per day. The Masela block covers nearly 2,500 square kilometres at a depth between 400 and 800 metres, about 170 kilometres southwest of the Tanimbar Islands.
INPEX’s commitment to the Vision 2035 strategy, announced earlier this year, includes the development of projects incorporating CCS to reduce greenhouse gas emissions. This approach addresses Indonesia’s carbon neutrality targets set for 2060. The duration of the Production Sharing Contract (PSC) extends to November 2055.
Shareholdings and strategic status
The shareholding structure is set at 65% for INPEX Masela Ltd., 20% for PT Pertamina Hulu Energi Masela, and 15% for PETRONAS Masela Sdn. Bhd. The project has held the status of strategic and priority infrastructure project with the Indonesian government since 2017. Economic prospects for eastern Indonesia are significant, with long-term investment and job opportunities in liquefied natural gas-related sectors.
The complete awarding of FEED packages marks a new phase of investment for Indonesia’s gas sector, as Asian demand for liquefied natural gas continues to shape regional supply strategies.
