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Indonesia’s Abadi LNG project may be delayed 2 years – regulator

Friday, 23 September 2022 | 00:00

Indonesia’s Abadi LNG project’s onstreaming may be delayed for two years from 2027, the industry regulator said on Thursday.

The project, in which Japanese oil and gas company Inpex 1605.T is the lead investor, has faced years of delay after various changes in planning, including to accommodate a government request to move the project onshore.

It has previously been expected to cost around $20 billion.

“Based on today’s information, 2027 is no longer viable, so we’ll shift the schedule say for two years,” said SKK Migas senior official Benny Lubiantara.

Authorities expect Inpex to submit a revised development plan for the project by year-end to include costs of carbon capture installations in their investment, the regulator said on Wednesday.

Indonesia is working to find a replacement investor in the project after Shell SHEL.L communicated to authorities their intention to divest 35% of their stake in it.

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.
Source: Reuters (Reporting by Bernadette Christina; Writing by Kanupriya Kapoor; Editing by Martin Petty)

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