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Japan's Inpex reaches milestone in $21 billion LNG project in Indonesia

By Reuters News

JAKARTA, Oct 27 (Reuters) - Japanese explorer Inpex 1605.T has completed the planning and engineering phase of its Abadi LNG project at Indonesia's Masela gas block, an official said on Tuesday, reaching a milestone in the Southeast Asian nation's biggest gas project.

  • Inpex Masela, its subsidiary, will focus on reaching the final investment decision for the project, its president director Kenji Hasegawa said in a ceremony marking completion of the front-end engineering design phase

  • Djoko Siswanto, chairman of Indonesia's upstream oil and gas regulator SKK Migas, said he hoped for a final investment decision by January 2027 at the latest

  • Investment in the project could reach $22 billion, above Inpex's latest estimate of $21 billion, Djoko said

  • Inpex's discovery of gas in the Masela block was first announced in 2000

  • Its development has been delayed due to factors that include a request for design changes by a previous government, the pandemic, and a plan to incorporate a carbon-capture facility

  • Ground-breaking took place in July, when President Prabowo Subianto said he expected the project to be delivered as soon as possible

  • Inpex aims to start production in early 2030 but the government has sought earlier delivery

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