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Project Insights

Shell may exit Abadi after Jokowi sinks FLNG hopes

Indonesia’s president has decided the Abadi LNG facility will be a conventional onshore plant, turning down the FLNG project planned by Inpex Indonesia’s president has decided the Abadi LNG facility will be a conventional onshore plant, turning down the FLNG project planned by Inpex.
By Andrew Walker and Damon Evans 29 March 2016 Asia Pacific / LNG 0 19715
Indonesian President Joko Widodo has opted for an onshore LNG plant for the Abadi project. (PA)

Indonesia’s President Joko Widodo has vetoed the 7.5 mtpa Abadi FLNG scheme proposed by Inpex and Shell for their Masela Block in the Arafura Sea. The political resistance to FLNG could see Shell, a pioneer in the technology, exit the project.

The initial plan for a 2.5 mtpa FLNG scheme was approved in 2010, but after the two companies found more gas – the reserve estimate was boosted from 189.7 billion cubic metres to 303.9 bcm in 2014 – they proposed enlarging the development to...