A huge gas field project in Indonesia, implemented by the Japanese company "Inpex" (Inpex) and repeatedly postponed for many years, has received government approval to start its work, according to an official from the Ministry of energy.

The development of a huge gas field in Indonesia.. Its reserves are 12 trillion cubic feet

The investment cost of the project is estimated at about 20 billion dollars, and it works to extract gas from offshore fields and launch a liquefied natural gas plant, according to reports seen by the specialized energy platform.

The Japanese company is leading the alliance implementing the Indonesian gas project "Abadi Masela" (Abadi Masela), Reuters reported on Saturday, December 2, 2023.

The project to develop the field, which has estimated reserves of about 12 trillion cubic feet, has been delayed for many years due to several reasons, including amendments made by the government to the contracts concluded with the Japanese company.

Date of operation of the Indonesian gas project

The director general of oil and gas at the Ministry of energy, totoka ariadji, said that the Indonesian gas project, approved by the government after the development of its plan, will start operating in 2029.

According to the plan, the project's LNG division will produce about 9.5 million tons per year, or the equivalent of 150 million cubic feet per day of natural gas. The project also produces about 35 thousand barrels of condensate per day.

The Japanese company, which is leading the Coalition for the implementation of the Indonesian gas project, presented the developed plan earlier this year (2023) after adding carbon capture activity and storage equipment to it.

Shell completed the sale of 35% of its stake in the project last October to local companies Pertamina (Pertamina) and Malaysian Petronas (Petronas), according to Reuters.

Project location

The Indonesian liquefied gas project, affiliated with"Abadi Masila" is located in the east of the country, and is connected to the Abadi offshore gas field in the Masila square of the Arafura Sea, according to a report by the "NS Energy" website about the project.

The report, which was reviewed by the specialized energy platform, pointed out that the Japanese company, which is developing a similar project in Australia, acquires 65% of the Indonesian gas project.

Several amendments have been made to the project plan over the past years; the first plan was to build a floating liquefied gas station, and then it was amended in 2019, to become an onshore liquefied gas station.

The first plan also targeted the start of work and operation in 2027, and in the last plan it was postponed to 2029.

The gas field is located at a depth of 400 to 800 square meters under the waters of the Arafura Sea, and the production area covered by the concluded contracts in the square reaches 2503 square kilometers.

The Japanese company won the contract for research and exploration in the area by tender in 1998, then discovered gas in the field in 2000, and had to drill 9 wells to confirm the economic feasibility of producing the field.

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