Japan’s largest oil and gas exploration company, Inpex Corp $1605.T, has announced plans to make a final investment decision (FID) on its liquefied natural gas (LNG) Abadi project in Indonesia by 2027. This decision is part of the company’s broader strategy to expand LNG supplies and support the global energy transition.

Investment Plan and Key Projects

Under its newly outlined three-year business plan covering activities through 2027, Inpex intends to invest ¥1.8 trillion (approximately $11.7 billion USD) in key growth areas. Central to this plan are two major projects: the flagship Ichthys LNG project in Australia and the delayed but critical Abadi LNG project in Indonesia.

Key Investments:

1. Abadi LNG project, Indonesia: Final investment decision expected by 2027.

2. Ichthys LNG project, Australia: Continued capacity expansion and operational development.

Importance of LNG in the Energy Transition

In a recent press conference, Inpex President Takayuki Ueda highlighted the critical role of LNG and natural gas in the energy transition. He emphasized their lower greenhouse gas emissions compared to other fossil fuels, positioning them as vital resources for achieving sustainability goals while maintaining practicality for industrial and energy demands.

Why Natural Gas and LNG Matter:

- Lower Emission Footprints: Compared to coal or oil, natural gas produces significantly fewer greenhouse gas emissions, contributing to climate action initiatives.

- Practical Fuel Option: LNG remains a reliable, scalable, and efficient energy source for evolving global demands.

Timeline for Abadi LNG Project

The Abadi LNG project has experienced a series of delays due to planning modifications and ownership changes. In 2023, Shell PLC $SHEL exited the venture, selling its 35% stake to Indonesian state-owned Pertamina and Malaysia’s Petronas. Inpex, which continues its leading role with a 65% stake, remains committed to project completion, aiming to finalize its planning phase by 2027 and begin production in the early 2030s.

Key Milestones for Abadi LNG:

- 2023: Shell exits, selling its 35% stake to Pertamina and Petronas.

- 2027: Finalization of design and approval of FID.

- Early 2030s: Expected start of LNG production at the Abadi project.

Conclusion

Inpex Corp’s sustained focus on LNG development, including Abadi and Ichthys projects, underscores its commitment to ensuring natural gas plays a pivotal role in the energy landscape of the future. As the world shifts toward cleaner energy sources, LNG’s lower carbon emissions and scalable production make it an increasingly important solution for global energy needs.