MoU signed for long-term LNG supply to power plant in Indonesia

PT Perusahaan Listrik Negara (PLN) has signed a memorandum of understanding (MoU) with Japan-based Inpex for the long-term supply of liquefied natural gas (LNG) from the Abadi LNG project to natural gas-fired power plants in Indonesia.  The MoU also covers joint studies in blue hydrogen, ammonia and carbon capture and storage (CCS) using natural gas produced from the project.

The USD20 billion Abadi LNG project located in eastern Indonesia’s Arafura Sea is expected to produce around 9.5 million tons per annum of LNG. It is a key project to address domestic demand for natural gas. Although according to initial plans the project was to be developed as a floating LNG project, this was revised in 2019 to include an onshore LNG plant.

Inpex owns a 65 per cent interest in the Abadi project while Shell owns the remaining 35 per cent.