The Abadi LNG project, operated by INPEX Masela Ltd., has reached a major milestone with the commencement of front-end engineering and design (FEED) activities at its onshore liquefied natural gas (OLNG) facility in Indonesia’s Masela Block, marking the completion of all four FEED package awards.
The latest development follows the formal award of the OLNG contract package, moving the project into a crucial engineering phase that will define plant specifications and pave the way for construction.
The Abadi LNG venture, governed by a production sharing contract (PSC) running until 15 November 2055, spans approximately 2,500 square kilometres in water depths of 400–800 metres, located 170–180 kilometres southwest of the Tanimbar Islands Regency.
Once operational, the facility is expected to deliver 10.5 million tonnes per annum (mtpa) of natural gas output.
The OLNG component alone is designed to produce 9.5 mtpa of LNG, equivalent to more than 10 per cent of Japan’s annual LNG imports.
The project incorporates carbon capture and storage (CCS) features to reduce greenhouse gas emissions and strengthen its low-carbon credentials.
INPEX Masela is employing a dual FEED strategy to encourage competitive, high-quality submissions.
One consortium comprises PT JGC Indonesia and PT Technip Engineering Indonesia, while the second includes PT KBR Indonesia, Samsung E&A, and PT Adhi Karya (Persero).
The consortium that delivers the most competitive FEED work will secure the subsequent engineering, procurement, and construction (EPC) phase.
Beyond supplying Indonesia, the project is expected to bolster energy security in Japan and other Asian nations, aligning with INPEX’s Vision 2035 strategy announced in February 2025.
The plan seeks to expand the company’s global natural gas and LNG portfolio while advancing its emissions-reduction commitments.
The Abadi LNG project is also anticipated to stimulate economic growth across eastern Indonesia, supporting national objectives to achieve net-zero CO₂ emissions by 2060.
In March 2024, INPEX Masela awarded Dutch company Fugro a contract to conduct a marine survey for the project, laying the groundwork for offshore components.
With FEED now in full swing, the Abadi LNG initiative is positioned to enter its next stage of development, advancing both Indonesia’s energy ambitions and regional economic prospects.