Inpex to Delay Investment Decision on Masela Abadi LNG Project in Indonesia

Researched by Industrial Info Resources (Sugar Land, Texas)--Inpex Corporation (Tokyo, Japan)is set to delay its final investment decision for its proposed $15 billion to $20 billion liquefied natural gas (LNG) project at the offshore Masela Block in Indonesia due to Royal Dutch Shell's (NYSE:RDS.A) possible withdrawal from the project, previous COVID-19 restrictions and design adjustments brought about by the carbon-neutral LNG trend.

Industrial Info assesses this project as having a low probability of moving forward as planned.

Preparation works for front-end engineering design have been temporarily suspended. The completion of an environmental impact assessment for the project also is affected because of logistics challenges related to COVID. Inpex also needs to consider the redesigning of the project, in line with the increasing move towards decarbonization, hence taking into consideration the aspect of carbon capture utilization and storage. Despite these challenges, Inpex says it remains committed in the development of the project.

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