Incredible £15bn project that will transform security in huge country | World | News
Construction began this month on a massive multibillion-dollar project in a huge Asian country. Located between the Indian and Pacific oceans, Indonesia has welcomed the long-awaited Abadi Masela liquefied natural gas (LNG) project. The $21bn (£15.8bn) investment is one of the country’s largest ever energy developments and is expected to significantly improve domestic energy security.
Located in the Masela Block in eastern Indonesia, the project is being developed by Japan’s Inpex Corp in partnership with Indonesia’s Pertamina and Malaysia’s Petronas. The facility, with production planned to begin around 2029 or 2030, is expected to be one of Indonesia’s largest sources of natural gas.
Indonesian Minister of Energy and Mineral Resources Bahlil Lahadalia said the project is expected to produce 9.5 million tonnes of LNG annually, as well as 150 million standard cubic feet of pipeline gas per day and 35,000 barrels per day of condensate.
The Minister added that 60% of gas production will be allocated to the domestic market and priority will be given to sub-sectors such as fertilizer production and raw materials.
The Abadi project will also incorporate carbon capture and storage technology in Indonesia’s first large-scale LNG developments and incorporate emissions reduction measures from the start.
The start of construction is important news for the country, as the project has been delayed for decades. The agreement, which was first signed in 1998, was postponed due to years of exploration work, changes in development plans and prolonged negotiations regarding investment.
In 2016, the Indonesian Government decided to build the gas development facility onshore rather than offshore. The project was redesigned and costs increased.
The Abadi Masela gas field contains an estimated 6.97 trillion cubic feet (TCF) of natural gas reserves, making it one of Indonesia’s largest undeveloped offshore gas resources.
The country was once the world’s largest exporter of LNG, but has lost market share over the past two decades as production from aging gas fields declines and new projects face delays.
Indonesia uses most of its natural gas at home, and President Prabowo Subianto has prioritized energy self-sufficiency in his administration. It also focuses on downstream processing of natural resources and attracting more foreign investment in strategic industries.
He said: “We must continue sub-industrialisation, which requires energy. Indonesia has abundant energy resources and we have the resilience and measures to keep the country on a stable course despite global uncertainties.”
