LNG

Japanese utility Inpex has signed preliminary deals with BP and Shell Eastern Trading, as well as the Indonesian companies PLN Energi and Perusahaan Gas Negara, to offtake LNG from the 9.5 mtpa Abadi liquefaction project. The accords take the project closer to a final investment decision (FID) in 2027.

Shell reported a drop in fourth-quarter and annual profits as oil and gas prices declined from last year while the UK major’s LNG sales increased to over 67 million tonnes for the year.

Indonesian state-owned oil and gas company Pertamina is preparing to acquire Shell’s stake in the Masela natural gas block that will underpin the Abadi LNG export project in Indonesia and boost future cargo availability in the Pacific Basin, while Shell is also selling all its assets in Pakistan in a pull-out from Asia's more difficult areas to do business.

Inpex Corp., the leading Japanese energy company and operator of the Ichthys liquefied natural export plant in Australia and developer of the Abadi liquefaction project in Indonesia, reported 34 cargoes shipped in the first quarter from the Ichthys plant at Bladin Point near Darwin.

Inpex gave the figure in its first-quarter earnings when it reported a more than 60 percent surge in net income on higher volumes and prices.

The company posted a 19 percent jump in quarterly sales of 578.4 billion yen ($4.28Bln) in the first three months of 2023 versus 485.3Bln ($3.59Bln) in the 2022 quarter.

Net income for the quarter rose by 61.2 percent to 151.4Bln yen ($1.12Bln) compared with 93.9Bln yen ($695 million) in the prior-year quarter coming mainly from sales of oil, pipeline gas and LNG.

Gas prices

The average overseas natural gas sales price for Inpex increased by 11 percent to $6.73 per thousand cubic feet of gas from $6.06 per mcf.

The Inpex oil and gas assets in Japan comprise the domestic Japanese Minami-Nagaoka Gas Field in Niigata Prefecture and the Naoetsu LNG import terminal.

Inpex said average quarterly domestic natural gas prices soared to 110.67 yen per cubic metres from 65.76 yen per cubic metre in the same quarter last year.

“The company’s net sales of crude oil increased by 44.1Bln yen, or 12.4 percent, to 399.6Bln yen, and net sales of natural gas increased by 49.8Bln, or 40.2 percent, to 173.7Bln yen,” the company said.

“Sales volume of crude oil increased by 1,502 thousand barrels, or 4.3 percent, to 36,677 thousand barrels, and sales volume of natural gas increased by 2,456 million cf, or 2.0 percent, to 128,241 million cf,” Inpex added.

Inpex own a 66 percent stake the Ichthys plant in Australia’s Northern Territory and currently supplies about 10 percent of Japan’s LNG imports. The other main shareholder is TotalEnergies.

The Japanese company has also finalized a revised development plan for the Abadi LNG export project in Indonesia, a joint venture with Shell. 

Inpex submitted the new plan to Indonesian regulators in April 2023 incorporating a carbon-capture and storage component.

Inpex's venture will be located onshore Yamdena Island in the Tanimbar Island chain and use feed-gas from the Abadi gas field in the Masela Block of Indonesia's Arafura Sea.

The liquefaction and export plant could be expected to be operational by around 2030.

Inpex Corp., the developer of the Abadi onshore liquefaction and export plant in Indonesia, has awarded the Netherlands-based geo-data company Fugro a large marine survey contract to conduct geophysical and geotechnical surveys for the project.

Inpex is building the plant on Yamdena Island in a joint venture with Royal Dutch Shell using feed-gas from the Abadi gas field in the Masela Block of the Arafura Sea.

The liquefaction and export plant is expected to be operational by around 2027.

Inpex has already completed preliminary front-end engineering and design (FEED) for a facility with an annual initial capacity of 10.5 million tonnes.

Dutch firm Fugro will surveys and associated studies needed to support the FEED process for offshore production facilities and the pipeline to the onshore liquefaction plant.

Fugro said the geo-data would be acquired using Fugro’s deepwater autonomous underwater vehicle (AUV) “Echo Surveyor” and their robotic seafloor drill, “Seafloor Drill 2”, deployed from Indonesian support vessel.

“We are pleased to once again support Inpex, a company that understands the value provided by our geo-data expertise,” said Jerry Paisley, Fugro’s Business Line Director for the Asia Pacific Region.

“This is particularly valid for the development of the Abadi LNG project, where overcoming engineering challenges including slope stability, regional seismicity, subsea faulting and carbonate sediments will require a collaborative and informed approach at each stage of the Geo-data acquisition, analysis and advice,” added Paisley.

Indonesia’s state oil and gas regulator, the Upstream Oil and Gas Regulatory Special Task Force (SKK Migas), said it had sent a formal recommendation letter to the Maluku provincial administration formally asking to have the liquefaction plant on Yamdena Island.

The Indonesians had earlier proposed that a 370-mile pipeline should be built to connect the Abadi gas field resources to a liquefaction plant on Indonesia’s Aru Island, while Inpex had preferred a location in the southeast Asian nation's Tanimbar Islands.

Analysts said that Inpex seemed to have had its way as Yamdena Island is the largest of the Tanimbar Islands chain.

The original Inpex plan for the Abadi project with partner Shell was to produce LNG from a floating production hull, similar to the Prelude FLNG project offshore northwest Australia that shipped its first LNG cargo in June 2019.

The Indonesians have also approved a 20-year extension to the Production Sharing Contract (PSC) for the Masela Block, extending the term of the PSC until 2055.

Inpex and Shell will be finalizing a marketing plan in 2020 and will also be considering supply accord for the Indonesian state-run domestic natural and electricity companies, Perusahaan Gas Negara and Perusahaan Listrik Negara.

Japanese energy major Inpex Corp. has achieved completion of the project financing contracts for its Ichthys LNG export plant at Bladin Point near Darwin in the Australian Northern Territory after costs and delays multiplied over several years.

Inpex Corp. of Japan and Royal Dutch Shell now have a firm decision from the Indonesian government on the location for their onshore liquefied natural gas plant using feed-gas from the Abadi gas field in the Masela Block in the Arafura Sea offshore Indonesia.

Inpex Corp. of Japan and Royal Dutch Shell have received Indonesian approval for their new Plan of Development for the onshore liquefied natural gas project using feed-gas from the Abadi gas field in the Masela Block in the Arafura Sea of Indonesia.

Inpex Corp. of Japan and Royal Dutch Shell have now formally submitted their new Plan of Development for the onshore liquefied natural gas project using feed-gas from the Abadi gas field in the Masela Block in the Arafura Sea of Indonesia.

Inpex, the Japanese energy company with majority stakes in the Ichthys LNG project in Australia’s Northern Territory and the Prelude FLNG venture that has just come on stream is making progress on its Abadi onshore plant development in Indonesia.