INPEX CORPORATION has officially commenced Front End Engineering and Design (FEED) work for the Abadi LNG Project, a strategic initiative located in the Masela Block offshore Indonesia. Operated by INPEX Masela, Ltd., a wholly-owned subsidiary of INPEX, the project aims to produce and process hydrocarbons from the Abadi Gas Field and deliver LNG through a new onshore LNG (OLNG) facility.

Project Highlights

• LNG Production Capacity: Approximately 9.5 million tons per annum (mtpa)

• Total Gas Output: 10.5 mtpa (including pipeline gas for local supply)

• Condensate Production: Up to 35,000 barrels per day

• Participating Interests: INPEX Masela Ltd. - 65% (Operator), PT Pertamina Hulu Energi Masela - 20%, PETRONAS Masela Sdn. Bhd. - 15%

• Set approximately 170–180 km southwest of the Tanimbar Islands, the offshore project spans a contract area of 2,503 square kilometers, in water depths ranging from 400 to 800 meters.

The Abadi LNG Project is expected to supply more than 10% of Japan’s annual LNG imports and make a significant contribution to Indonesia’s energy security, export revenue, and regional economic development—particularly in the eastern provinces.

Contracts Awarded for Three of Four FEED Packages

INPEX has already awarded contracts for the FPSO, SURF, and GEP FEED packages, signaling a major milestone in project execution.

1. FPSO (Floating Production, Storage and Offloading) – Dual FEED Approach: To foster a competitive environment and ensure the highest technical and commercial standards, INPEX has adopted a dual FEED strategy. Two contractor consortiums will work in parallel, with the EPC contract ultimately awarded to the consortium delivering the most superior FEED outcome.

   a. Consortium 1:Technip Engineering (Lead) with Technip and JGC

   b. Consortium 2:Saipem (Lead) with Tripatra Engineers & Constructors, Tripatra Engineering and McDermott

2. GEP (Gas Export Pipeline): Worley - Defining specifications for the gas pipeline system connecting the FPSO to the onshore LNG plant.

3. SURF (Subsea Umbilicals, Risers and Flowlines): PT Worley SEA Indonesia - Review and definition of subsea production infrastructure.

4. Offshore LNG FEED contract package: Award is expected to be awarded under a dual FEED methodology in the near term, keeping momentum high across all workstreams.

Each package integrates provisions for Carbon Capture and Storage (CCS), underscoring INPEX’s commitment to delivering a low-carbon LNG supply chain in alignment with its INPEX Vision 2035 and Indonesia’s 2060 net-zero target.

Subcontracting and Supply Chain Surge Anticipated

With FEED now underway, a subsequent surge in subcontracts is expected, activating a broad range of local, regional and international supply chain opportunities. The involvement of numerous Indonesian engineering firms also supports national capacity building and aligns with the project’s designation as a National Strategic Project and Priority Infrastructure Project by the Indonesian government.

As more subcontracts are rolled out and the OLNG contractor is selected, stakeholders can anticipate growing opportunities throughout the engineering, fabrication, logistics, and services sectors tied to this landmark energy project.

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