INPEX Signs MoU on LNG Supply from Abadi LNG Project, Masela Block, Indonesia

Tokyo, Japan – INPEX CORPORATION (INPEX) announced that through its subsidiary INPEX Masela, Ltd., and on behalf of its joint venture partner Shell Upstream Overseas Ltd. (Shell), it has signed a memorandum of understanding (MOU) with PT Perusahaan Gas Negara Tbk (PGN) concerning the domestic LNG supply from the Abadi LNG Project (the Project). The MOU was signed in the presence of the Head of SKK Migas (Special Task Force for Upstream Oil and Gas Business Activities), Dwi Soetjipto, on the occasion of the “2020 International Convention on Indonesian Upstream Oil & Gas” held virtually 2-4 December 2020.

Discussions will now commence regarding sales and purchase of the LNG supply from the Project to PGN, the largest national gas company which owns and manages the majority of domestic gas infrastructure and is responsible to carry out a gasification program in Indonesia.

The LNG supply from the Project is consistent with the Indonesian Government’s focus on optimizing domestic natural resource utilization and will provide significant contributions to Indonesia where gas demand continues to grow, including multiplier effects that will benefit the country, particularly in the eastern region.

The Project is the first large-scale integrated LNG development project operated by INPEX in Indonesia and follows on from the INPEX-operated Ichthys LNG Project in Australia. The Abadi gas field features excellent reservoir productivity and contains significant resource volumes, raising expectations of efficient development and stable LNG production operations over the long-term