Japanese energy giant INPEX Corporation, through its subsidiary INPEX Masela Ltd., announced on Monday, August 4, 2025 the commencement of the Front-End Engineering and Design (FEED) phase for the Abadi LNG Project in Indonesia’s Masela Block. 

Acting as operator on behalf of joint venture partners PT Pertamina Hulu Energi Masela (PHE Masela) and Petronas Masela Sdn. Bhd., the company confirmed the launch of FEED activities that will define critical engineering specifications for both offshore and onshore facilities.

The FEED scope encompasses four major packages: Onshore LNG (OLNG), Floating Production Storage and Offloading (FPSO), Subsea Umbilicals, Risers and Flowlines (SURF), and Gas Export Pipeline (GEP). INPEX has already been awarded contracts for the SURF, GEP, and FPSO packages.

Notably, the FPSO and OLNG packages will apply a “dual FEED” approach, engaging two separate contractor consortia in parallel to foster competitive tendering. Under this system, the same consortium executing the FEED will proceed with the Engineering, Procurement, and Construction (EPC) contract, awarded to the bidder offering the most advantageous technical and commercial proposal.

The project’s estimated annual LNG production capacity of 9.5 million tons represents more than 10 percent of Japan’s yearly LNG imports, highlighting its strategic importance for both Indonesian and regional energy security.

The Abadi field’s robust reserves and high-quality gas characteristics enable efficient development, while the inclusion of Carbon Capture and Storage (CCS) components aligns with efforts to reduce greenhouse gas emissions.

INPEX expressed optimism that this FEED phase will advance its natural gas and LNG business, contributing to the company’s INPEX Vision 2035 goals of greenhouse gas reduction. The project is also expected to stimulate much-needed economic growth in eastern Indonesia and support the national target of achieving net-zero CO2 emissions by 2060.

Project overview

- PSC Term: Until November 15, 2055

- ​Contract Area: Approximately 2,503 km²

- ​Water Depth: 400-800 meters

​- Location: 170-180 km southwest of the Tanimbar Islands, Maluku

- Production Capacity: 10.5 million tons of gas annually, including ~9.5 million tons of LNG and domestic gas supply; up to 35,000 barrels of condensate per day

- Ownership: INPEX Masela Ltd. (65 percent), PHE Masela (20 percent), Petronas Masela (15 percent)

- Status: Designated as a National Strategic Project (PSN) by the Indonesian government since 2017

FEED contract highlights

- FPSO (Dual FEED): Consortium 1: PT Technip Engineering Indonesia, PT Technip Indonesia, PT JGC Indonesia

Consortium 2: PT Saipem Indonesia, PT Tripatra Engineers & Constructors, PT Tripatra Engineering, PT McDermott Indonesia

Scope: Defining offshore production facility specifications

- GEP and SURF: Contractor PT Worley SEA Indonesia

Scope: Defining specifications for the gas export pipeline and subsea systems

The Abadi LNG Project is poised to become a cornerstone of Southeast Asia’s LNG supply chain, providing stable, lower-carbon energy while contributing significantly to Indonesia’s economic and environmental objectives.