Abadi LNG project in Indonesia begins FEED for onshore plant

The Abadi LNG Project in Indonesia’s Masela Block has entered a key development phase with the commencement of front-end engineering and design (FEED) for its onshore liquefied natural gas (LNG) facility, according to INPEX Corp., the project’s operator.

The milestone marks the awarding of the final FEED package for the project, which has now completed engineering contract awards for all four critical components: the onshore LNG plant (OLNG), floating production storage and offloading unit (FPSO), subsea umbilicals, risers and flowlines (SURF), and the gas export pipeline (GEP).

The OLNG FEED contract uses a dual-consortium approach designed to foster competition and deliver optimal performance. Two contractor groups—one led by PT JGC Indonesia with PT Technip Engineering Indonesia, and another led by PT KBR Indonesia with Samsung E&A Co. Ltd. and PT Adhi Karya—will perform parallel FEED work. The consortium that delivers the most technically and commercially attractive outcome will be awarded the subsequent engineering, procurement, and construction (EPC) contract.

The FEED scope includes infrastructure to support carbon capture and storage (CCS), making the project one of the few large-scale LNG ventures globally to integrate CCS from the design phase.

Once operational, Abadi LNG is expected to produce up to 9.5 million metric tons of LNG annually, equivalent to more than 10% of Japan’s yearly LNG imports. Total natural gas production, including LNG and domestic pipeline supply, will reach approximately 10.5 million tons per year, supported by condensate output of up to 35,000 barrels per day.

According to INPEX, the project is designed to offer a long-term, low-carbon energy supply solution for Indonesia, Japan, and other Asian markets. The project has been classified by the Indonesian government as a national strategic and infrastructure priority project.

“This phase represents a major step forward in developing one of the most promising LNG resources in Asia,” said INPEX in its announcement. “With world-leading gas field properties and robust reserves, the project is positioned to support regional energy security while aligning with Indonesia’s net-zero goals for 2060.”

INPEX expects Abadi LNG to play a central role in its Vision 2035 strategy, which outlines expanded natural gas and LNG activities and a pathway to reducing the company’s greenhouse gas emissions. The company holds a 65% operating interest through its subsidiary, INPEX Masela Ltd., while Indonesia’s PT Pertamina Hulu Energi Masela and Malaysia’s PETRONAS Masela Sdn. Bhd. hold 20% and 15% stakes, respectively.

Located approximately 170–180 kilometers southwest of the Tanimbar Islands, the Masela Block covers an area of 2,503 square kilometers in water depths of 400 to 800 meters. The project’s production sharing contract (PSC) runs through November 15, 2055.

As global LNG markets tighten and long-lead-time projects gain urgency, Abadi LNG is emerging as a flagship development that combines scale, sustainability, and strategic location to meet Asia’s rising energy demand.