LNG

Indonesia has approved the extension of the Tangguh production sharing contract for 20 years to underpin the Tangguh LNG export project involving state companies, UK major BP, Japan’s Inpex and a Chinese stake, including in the Train 3 expansion currently under construction.

Inpex Corp, the Japanese oil and gas company and operator of the Ichthys LNG plant in Australia’s Northern Territory, is finalizing its revised development plan for the Abadi LNG export project in Indonesia to include carbon-capture facilities.

The Tangguh LNG export plant in Indonesia in the Bintuni Bay region of West Papua province is progressing towards completion in mid-2022 of the third liquefaction amid the launch of carbon-capture plan in a gas field reservoir.

Indonesia’s energy regulator has approved the development plan presented by Spanish energy company Repsol to develop one of the Asian nation’s largest onshore natural gas fields that would enable more LNG to be exported instead of being held back for domestic use.

Indonesian energy executives held a recent online conference with the national oil and gas regulator on ways of increasing domestic natural gas demand such as constructing more pipeline infrastructure to support the home market as a less expensive alternative to increasing LNG exports.

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.

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.

Energy World Corp., the Hong Kong-based and Australian-listed LNG developer, reported mixed preliminary full-year results as it progressed with its Philippines LNG and power hub and small-scale liquefaction plant at Sengkang in Indonesia where its production sharing contract is expected to be renewed.

Chiyoda Corp., the leading Japanese project engineer, was awarded a pre-front-end engineering and design subsea contract along with a partner for the Indonesian Abadi natural gas field in the Arafura Sea that will underpin an onshore LNG export project.