Inpex submits revised plan for Abadi project incorporating CCS component
SUMMARY
Inpex amended the revised POD to include plans to neutralise all carbon dioxide (CO2) emitted from natural gas production at the Abadi gas field through the introduction of CCS.
By Shardul SharmaPOSTED IN:
Japan’s Inpex has submitted a revised plan of development (POD) for the Abadi LNG project incorporating a carbon capture and storage (CCS) component to the Indonesian government, it said on April 4.
Inpex amended the revised POD to include plans to neutralise all carbon dioxide (CO2) emitted from natural gas production at the Abadi gas field through the introduction of CCS. “In addition, other circumstances facilitating the project’s implementation have been restored, enabling the submission of the revised POD at this time,” it added.
In March this year, Indonesia enacted a ministerial regulation of energy and mineral resources on carbon capture, utilisation and storage (CCS/CCUS) in the oil and gas business. Accordingly, the Abadi project is expected to be the first CCS project to be carried out as a cost-recovery business based on the production-sharing contract framework governing upstream oil and gas projects in Indonesia, Inpex said.
Inpex said it expects to sequentially resume activities associated with the project, including various on-site activities, and prepare to begin FEED work subject to the authorities’ approval of the revised POD. Thereafter, INPEX expects to complete the necessary preparations including marketing and financing activities and proceed with the project aiming to reach a final investment decision in the latter half of the 2020s and commence production in the early 2030s.
The project is expected to be Inpex’s second self-operated, large-scale natural gas development project following the Ichthys LNG project in Australia. The project’s annual LNG production volume is expected to reach 9.5mn metric tons.
