Abadi LNG project completes FEED contract awards

INPEX has awarded the front-end engineering and design contract package for the onshore LNG plant planned as part of the Abadi LNG project in Indonesia’s Masela Block, completing FEED awards for the project’s four major development packages.

The latest award covers FEED for the onshore LNG plant and follows earlier packages covering the floating production, storage and offloading vessel, subsea umbilicals, risers and flowlines, and the gas export pipeline. INPEX Masela Ltd., a subsidiary of Japan-based INPEX, operates the project.

The onshore LNG package will use a dual-FEED approach in which two contractor groups will carry out engineering work separately and in parallel. One consortium consists of PT JGC Indonesia as lead contractor and PT Technip Engineering Indonesia. The second includes lead contractor PT KBR Indonesia, Samsung E&A and PT Adhi Karya.

Under the contracting strategy, the consortium submitting the technically and commercially superior FEED proposal is expected to receive the subsequent engineering, procurement and construction work. The FEED scope also includes carbon capture and storage.

The Abadi development is designed to produce approximately 9.5 million tons of LNG annually, along with pipeline gas for the Indonesian domestic market and as much as 35,000 barrels per day of condensate. Total natural gas production is expected to be equivalent to approximately 10.5 million tons per year of LNG.

INPEX said the planned LNG output would be equivalent to more than 10% of Japan’s annual LNG imports. The company expects the project to provide gas to Indonesia, Japan and other Asian markets while incorporating CCS as part of the development.

The Masela Block is located approximately 170 to 180 km southwest of Indonesia’s Tanimbar Islands Regency in water depths ranging from 400 to 800 meters. A project concept diagram included with the announcement shows subsea production facilities feeding the FPSO, with dry gas subsequently transported through the gas export pipeline to the onshore LNG facility. Condensate would be offloaded from the FPSO.

INPEX Masela holds a 65% operating interest in the development. PT Pertamina Hulu Energi Masela holds 20% and PETRONAS Masela Sdn. Bhd. holds the remaining 15%. The Indonesian government designated Abadi a national strategic project in 2017.

The production-sharing contract for the approximately 2,503-sq.-km block runs through November 2055.