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PLN, Pupuk Indonesia agree to buy gas from Abadi LNG

Inpex Corporation of Japan, the operator of Masela block said Indonesian state electricity firm PT Perusahaan Listrik Negara (PLN) and state-owned fertilizer firm PT Pupuk Indonesia, have agreed to purchase gas produced from its Abdi LNG project within Masela block.

The buyers and Inpex have signed memorandum of understanding (MoU) recently (feb 19) the sales and purchase agreement (SPA). The MoU was signed by INPEX President Director Masela, Ltd Kenji Kawano, PLN President Director Zulkilfi Zaini, President Director of Pupuk Indonesia Aas Asikin Idat.

Indonesian Minister of Energy and Mineral Resources (MEMR) Arifin Tasrif, upstream authority SKK Migas Head Dwi Soetjipto, Ambassador of Japan to Indonesia Masafumi Ishii and President & CEO of INPEX Corporation Takayuki Ueda witnessed the signing.

Minister Arifin said PLN will purchase the gas from the Abadi Field to generate its gas power plants, while PT Pupuk Indonesia will purchase the LNG from the Abdi LNG project at volume of 150 mmscfd for 20 years.

SKK Migas Head Dwi Soetjipto said, the absorption of the gas by Pupuk Indonesia and PLN shows “the commitment of the government and the upstream oil and gas industry to prioritize domestic gas demand as a joint effort to improve the competitiveness of the national industry to build a sustainable Indonesian economy.”

The Abadi Masela Field is targeted to come onstream in the second quarter of 2027 with cumulative gross production during the contract of 16.38 trillion standard cubic feet (tscf). The LNG plant is designed to have a capacity to produce 9.5 million tons per annum (mtpa) and 150 mmscfd for piped gas and cumulative condensate production of 255.28 million stock tank barrels (mmstb).

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