November 15, 2022 [Reuters] – Japanese oil and gas company Inpex corp is expected to submit a revised development plan for its Indonesia gas project by year-end to include carbon capture installation in their investment.
Inpex is leading the investment into Indonesia’s Abadi LNG project that had previously been expected to cost around $20 billion. The project has faced years of delay after various changes in planning, including to accommodate government’s request to move the project on-shore.
“Inpex as the leader of the consortium has decided that CCUS (carbon capture, utilisation and storage) will be included which mean there will be additional capital expenditure there,” Dwi Soetjipto, chairman of Indonesia upstream oil and gas regulator, said on the sidelines of an industry conference.
He said the inclusion of CCUS was estimated to cost an extra $1.4 billion.
The company is also expected to recalculate the project’s value due to rising price of gas, Dwi said, expecting the new plan of development to be submitted in December.
Meanwhile, he said Shell had communicated to authorities their intention to divest 35% of their stake in the Abadi LNG project at the Masela block, and the government is working to find a replacement.
Earlier this month, Investment Minister Bahlil Lahadalia said the government plans to form a consortium consisting of state oil company Pertamina, the Indonesia Investment Authority (INA) sovereign wealth fund and other companies that could take over Shell’s stake. read more
“We are confident all of this can run in parallel with the formation of the new consortium,” Dwi said.
An Inpex representative in Jakarta did not immediately respond to Reuters seeking comments.
Reporting by Bernadette Christina
11,340 tank storage and production facilities as per the date of this article. Click on the button and register to get instant access to actionable tank storage industry data