Inpex Starts FEED Work for Abadi LNG Scheme Offshore Indonesia

Inpex Masela, a subsidiary of Japan’s Inpex and the operator of the Abadi liquefied natural gas (LNG) project in the Masela Block in Indonesia, has started Front End Engineering and Design (FEED) work for the scheme, with Saipem, Worley, Technip, McDermott and others sharing various scopes of several work packages.

The FEED work involves reviewing and defining the specifications of the facilities that will produce and process hydrocarbons from the Abadi Gas Field, as well as the onshore LNG plant (OLNG).

The FEED work will consist of four packages - OLNG; floating production, storage and offloading (FPSO); subsea umbilicals, risers and flowlines (SURF); and gas export pipeline (GEP).

Each package includes a scope related to carbon capture and storage (CCS). Inpex has awarded the FPSO, SURF and GEP contract packages.

For the FPSO package, the first consortium is made up of Technip Engineering Indonesia as lead contractor with Technip Indonesia and JGC Indonesia as consortium members.

The second consortium is run by Saipem Indonesia as lead contractor, with Tripatra Engineers & Constructors, Tripatra Engineering, and McDermott Indonesia as consortium members.

For the GEP and SURF work packages, Worley SEA Indonesia has been appointed as the main contractor.

Abadi LNG project's concept diagram (Credit: Inpex)

The FPSO contract package consists of a ‘dual FEED’ method involving two contractor consortiums that will work in parallel but separately to ensure a competitive environment is maintained.

In this method, FEED work and Engineering, Procurement and Construction (EPC) work will be awarded to the same contractor consortium, effectively assigning EPC work to the contractor consortium that delivers technically and commercially superior FEED services.

Inpex also plans to employ the dual FEED method for the OLNG contract package and will select the contractor and conclude the contract in due course.

The project’s annual LNG production volume is expected to reach 9.5 million tons, equivalent to more than 10% of Japan’s annual LNG imports. It will contribute to improving energy security in Indonesia, Japan and other Asian countries and generate a stable supply of low-carbon energy over the long term.