ASIATODAY.ID, JAKARTA – The Special Task Force for Implementing Indonesian Upstream Oil and Gas Business Activities (SKK Migas) together with INPEX Masela carried out the “PMT Kick-Off for the Abadi LNG Project” which was held in Jakarta, Thursday, December 28 2023.
This project is an effort to increase oil and gas production in Indonesia. The investment value of this National Strategic Project (PSN) reached 420.9 billion.
“Indonesia still has oil and gas potential to support domestic and global needs. This is a form of government support to maximize opportunities in the oil and gas sector,” said Head of SKK Migas Dwi Soetjipto.
The inauguration of this project was carried out after the government approved the revised Plan of Development (POD) which included a carbon capture storage (CCS) component.
This project is the first where CCS related costs have met the requirements for inclusion in cost recovery under the production sharing contract (PSC) scheme governing upstream oil and gas operations in Indonesia.
The approval of the revised POD paves the way for INPEX and its partners to fully promote the Abadi LNG project as a clean project to support the energy transition.
“The Abadi LNG project is also proof of commitment to increasing production while reducing emissions. The potential to become a CCS Hub with a CO2 injection capability of 71 to 80 million tons and a storage capacity of up to 1.2 gigatons,” he said.
Meanwhile, Senior Vice President Asia Project INPEX, Akihiro Watanabe expressed his gratitude for the support of SKK Migas and the Indonesian government in the Abadi LNG project.
The annual LNG production volume at the Abadi LNG project is estimated to reach 9.5 million tonnes and is expected to contribute to increasing energy security in Indonesia, Japan and other Asian countries as well as producing a stable clean energy supply in the long term.
“Based on the nature of the world’s leading gas fields and abundant reserves that enable efficient development, as well as CCS components,” he said.
He said, INPEX together with PT Pertamina and Petronas would continue operations, including several activities at the location as well as preparing FEED work. After that, project implementation is carried out with the aim of reaching a final investment decision (FID) and starting production at an early stage after completing the necessary preparations including marketing and financing activities.
Akihiro Watanabe added that the LNG project is expected to be completed onstream in the fourth quarter of 2029.
“The hope is to be onstream in the fourth quarter of 2029 and start loading cargo in the first quarter of 2030 or sooner,” he said. (AT Network)
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