Inpex Masela, a unit of Inpex, has a 65 percent operating stake in the Abadi project, while Indonesia’s Pertamina has 20 percent, and Malaysia’s Petronas owns 15 percent.
The project is estimated to cost about $20 billion, and its annual LNG production volume is expected to reach 9.5 million tons.
Takayuki Ueda, president and CEO of Inpex, discussed the project during the company’s financial results presentation on February 12.
Based on the detailed cost estimates, calculated on the basis of FEED deliverables that are expected to be obtained at the end of 2026, Inpex will review and verify the validity of the EPC bid proposal, he said.
In August 2025, Inpex launched the FEED work for the Abadi LNG project.
A consortium consisting of Technip Engineering Indonesia, Technip Indonesia, and JGC Indonesia is working on the FPSO dual FEED.
Moreover, a consortium consisting of Saipem Indonesia (lead contractor), Tripatra Engineers & Constructors, Tripatra Engineering, and McDermott Indonesia are also working on the FPSO FEED.
Worley SEA Indonesia won the FEED work on the gas export pipeline, as well as the FEED work on subsea umbilicals, risers, and flowlines.
JGC and Technip Energies, and KBR, Samsung E&A, and Adhi Karya (Persero) are working on the onshore LNG (OLNG) plant dual FEED.
High interest
Ueda noted during the call that Inpex received non-binding letters of intent from potential buyers exceeding the planned Abadi LNG production volume.
Under the current circumstances that new LNG supply is dominant from North America and the Middle East, as one of the few large-scale LNG projects supplying from Asia, Abadi continues to draw “strong” buyer interest, according to Ueda.
He said that term-sheet negotiations to support a final investment decision (FID) are underway.
Ueda confirmed that Inpex is targeting FID in 2027.
He also discussed the project financing and permits.
The project will primarily utilize equity for the upstream part and loans for the downstream part.
He said that “steady” progress was made in securing cash reserves for upstream development in 2025, while “positive feedback” was confirmed by lenders to provide loans for downstream in the current environment.
Ueda said that Inpex obtained the forest release approval to convert the onshore LNG plant site from a forestry area to a non-forestry area, which is one of the prerequisites for securing environmental approvals.
He noted that work is ongoing to obtain the full set of environmental approvals
Inpex also started discussions with the Indonesian government on project economics to secure an IRR in the mid-teens range.
He said that negotiations on measures to ensure project economics will continue throughout the FEED period.
