Inpex, a Japanese oil and gas company, is leading the investment in the Abadi LNG project. Located in Indonesia, its cost was estimated at some $20 billion. However, the project is experiencing numerous delays.
Inpex includes CCUS
Inpex is expected to submit a new development plan for the Indonesian gas project. This is to be presented by the end of the year. In addition, it will include a CCUS installation.
Dwi Soetjipto, chairman of Indonesia’s upstream oil and gas regulatory authority, says:
“Inpex, as the consortium leader, decided to include CCUS (carbon capture, utilization and storage), which means additional capital expenditures.”
In fact, he says the addition of the USAC is expected to result in an additional cost of $1.4 billion. In addition, Inpex would have to recalculate the value of the project due to the spike in gas prices.
Shell wants to divest its stake
At the same time, Shell has announced that it intends to sell 35% of its stake in the Abadi project. Thus, the Indonesian government is looking for a replacement. Bahlil Lahadalia, Minister of Investment, then raised the possibility of forming a new consortium.
The latter could be composed of Pertamina, the sovereign wealth fund Indonesia Investment Authority (INA) and other companies. In Jakarta, Inpex did not wish to comment.
