Indonesia's LNG production will reach its peak by 2028 with supplies that include Masela, Minister of Energy and Mineral Resources Arifin Tasrif said, as the country also invites investors to develop more LNG facilities in the country.
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Register NowIn a prerecorded video address ahead of the Japan-hosted LNG Producer-Consumer Conference to be held Sept. 29, Tasrif said Indonesia's peak LNG production by 2028 would "consist of contractual 128 cargoes, uncommitted 201 cargoes, which could supply the domestic and also for export to secure the global LNG demand."
"This LNG production will be supplied through Bontang, Tangguh, and Masela LNG plant," Tasrif said.
Indonesia loaded a total of 265 LNG cargoes from its liquefaction terminals in 2021, according to S&P Global Commodity Insights. Of these, 80 stayed in Indonesia for domestic consumption.
Tasrif's remarks came to light a week after Dwi Soetjipto, chairman of the country's upstream regulator SKK Migas, said that Indonesia aims to start up the 9.5 million mt/year Abadi LNG project around 2027, with the government committed to supporting it as one of the country's strategy projects.
In another prerecorded video address for the LNG Producer-Consumer Conference, Soetjipto said Indonesia has named the Abadi-Masela project as one of four national upstream strategy projects with about $20 billion worth of investment.
"It will be the biggest investment from Japan in Indonesia in the last 50 years," Soetjipto said. "The government is committed to supporting the Abadi-Masela project so that it can onstream in around 2027."
Development plan
Operated by Japan's INPEX with 65% stakes along with Shell's 35% share, the Abadi LNG project, an onshore LNG project, is preparing for development in the Masela Block offshore Indonesia.
INPEX is currently in the middle of negotiations with the Indonesian government to revise a development plan approved in 2019 to introduce carbon capture, utilization and storage, or CCUS, in the Abadi LNG project, according to a company spokesperson.
The company currently aims to commence production from Abadi LNG in the early 2030s after making a final investment decision in the late 2020s, the spokesperson said.
The Abadi project is expected to produce about 9.5 million mt/year of LNG and up to 35,000 b/d of condensate. The project will also supply 150 million cubic feet/day of pipeline natural gas to the domestic market.