EPC Intel
EPC Intel

INPEX seeks contractors for game-changing Abadi LNG project

Japan’s INPEX has kicked off the tender process for a key contract on its Abadi LNG megaproject in Indonesia, one of Asia’s largest planned energy developments.

Japan’s INPEX Corporation has initiated the tender process for a major contract to support its flagship Abadi LNG project in Indonesia: a multibillion-dollar development poised to become one of Southeast Asia’s most significant energy undertakings.

INPEX is inviting bids for the Independent Project Management Consultancy (PMC) contract, a crucial role that will oversee and support front-end engineering and design (FEED) activities on the long-delayed project. The selected contractor will be responsible for ensuring design integrity, cost control, and schedule alignment ahead of a final investment decision, now anticipated in the next two years.

A Critical Milestone for Abadi LNG

The Abadi project, located in the Masela Block in eastern Indonesia, is being developed in partnership with Shell, which holds a minority stake. The planned facility includes an onshore liquefied natural gas (LNG) plant with a capacity of up to 9.5 million tonnes per annum (mtpa), alongside associated upstream gas production infrastructure.

After years of revisions and delays, the project received a boost when the Indonesian government approved a revised development plan based on onshore processing rather than a floating LNG solution. With growing demand for gas across Asia, INPEX aims to position Abadi as a key long-term supplier to regional markets, particularly Japan and South Korea.

Top Contenders for the PMC Role

EPCIntel.com expects the competition for the PMC contract to be intense, as the project’s scale and complexity demand an experienced consultancy with a global footprint and strong regional presence.

Based on our EPC and FEED contract database, we see several potential frontrunners for the the project, including:

Worley

The Australian engineering giant has long-standing experience with PMC and FEED roles on LNG projects across Asia and the Middle East. Worley previously supported the Ichthys LNG project, also operated by INPEX, making them a natural contender.

Technip Energies

With extensive experience in LNG and recent PMC wins globally, Technip Energies remains a strong candidate. The firm also boasts a solid track record in Indonesia, having delivered major oil and gas infrastructure in the past.

Wood

UK-based Wood is another key player known for project management consultancy services on megaprojects. Their presence in Asia and involvement in LNG facilities such as Shell’s Prelude FLNG makes them a logical candidate.

Bechtel

While traditionally an EPC player, Bechtel’s project management capability and LNG experience, particularly with high-profile projects in Australia and the U.S., could position them for a strategic PMC bid.

KBR

Houston-headquartered KBR has executed numerous PMC contracts for large-scale energy projects globally. Their blend of technical and project management skills aligns with INPEX’s expectations for the Abadi FEED phase.

Strategic Importance

The Abadi LNG development is a key pillar of Indonesia’s efforts to boost gas production and attract foreign investment into its energy sector. With global gas markets shifting in the wake of the energy transition, Abadi is seen as an essential component of Japan’s long-term energy security strategy.

“Securing a world-class PMC partner will be critical in de-risking the project and building momentum towards FID,” said one Jakarta-based industry analyst. “This role will have high visibility with both Indonesian regulators and Japanese stakeholders.”

What’s Next?

INPEX is expected to finalize the PMC award in the coming months, with the selected contractor mobilizing shortly thereafter to support FEED execution through 2026. The company is simultaneously progressing environmental permitting, land acquisition, and engagement with EPC contractors for future project stages.

With gas demand holding firm across Asia and regional governments seeking stable, lower-emission energy sources, the Abadi LNG megaproject could emerge as a strategic success if INPEX can align technical excellence with execution discipline.

About the Abadi LNG Project

The INPEX-operated Abadi LNG Project is one of Asia’s largest planned energy developments. It aims to liquefy natural gas from the Abadi Gas Field at an onshore facility, producing around 9.5 million tons of LNG annually, up to 35,000 barrels of condensate per day, and approximately 150 million cubic feet of natural gas per day. Following initial government approval in 2019, INPEX submitted a revised development plan incorporating carbon capture and storage (CCS) in April 2023, which was approved in December 2023 to improve sustainability and ensure long-term competitiveness. In October 2023, Pertamina (Indonesia) and PETRONAS (Malaysia) joined the project as strategic partners, bringing significant LNG expertise and regional experience.

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