JAKARTA (RambuEnergy.com) – Inpex Corporation of Japan was reported to have appointed Indonesian EPC company PT KBR Indonesia, PT Technip Engineering Indonesia and its affiliate firm PT Technip Indonesia to conduct Pre-Front End Engineering Design (Pre-FEED) for Abadi LNG project in Masela Block, Arafura Sea.
Inpex has to re-launch the Pre-FEED for the Abadi LNG project after the Indonesian government decided the LNG processing facilities of the project to be built onshore, instead of offshore (floating LNG).
Senior Specialist Media Relations of Inpex Corp Moch. Nunung Kurniawan was quoted by Katadata.co.id that the company has named the two companies – KBR and Technip – to carry out the pre-FEED.
He said the preliminary design of the onshore LNG plant will be conducted by PT KBR Indonesia, while the preliminary design of Floating Production Storage and Offloading (FPSO) will be conducted b Technip. They will immediately conduct the Pre-FEED.
The costs to conduct the Pre-FEED is estimated to reach US$23 million. The Pre-FEED is expected to last for three months.
The result of the Pre-FEED will be used by Inpex to submit the Plan of Development (PoD) of the Abadi Field, expected to be submitted in November this year.
INPEX said it will formulate a detailed revised plan of development (POD) contingent on the results of the Pre-FEED work and ongoing discussions with the Indonesian authorities to achieve a cost-efficient and economically competitive project.
Following government approval of the revised POD, a series of subsequent evaluations including front-end engineering and design (FEED) work will be carried out leading to a final investment decision (FID).
In September 2015 INPEX submitted a revised POD envisioning a larger 7.5 million tons per annum LNG processing capacity of a Floating LNG (FLNG) to the Indonesian government authorities. In April 2016, the authorities responded by instructing the company to re-propose the POD for the Abadi LNG Project based on an onshore LNG development scheme.
Following constructive discussions with the authorities that included agreeing to the need for an economically viable project, INPEX is now set to commence Pre-FEED work based on an onshore LNG development scheme with an annual LNG production capacity of 9.5 million tons.
Masela Block is estimated to have 18.47 trillion cubic feet of proved and probable gas reserves. The Abadi field project is one of the largest gas projects being developed in Indonesia. Inpex, along with its partner Shell, is expected to spend over US$5 billion to develop the field.
Initially, Inpex targeted to commence production of the Abadi field in 2018. However, it was then delayed to 2019 and now it is further delayed to 2022, after the Joko Widodo government instructed Inpex to build onshore LNG plants, instead of offshore Floating LNG (FLNG). (*)