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Project Insights

Masela mothballed until 2029, analysts say

Inpex received the letter of rejection for its Abadi FLNG plans on Monday, but Jakarta's insistence on the onshore option will likely delay development for five years Inpex received the letter of rejection for its Abadi FLNG plans on Monday, but Jakarta's insistence on the onshore option will likely delay development for five years.
By Damon Evans 8 April 2016 Asia Pacific / LNG 0 19861
Indonesia’s President Joko Widodo has now officially rejected the Abadi FLNG project. (PA)

Jakarta’s insistence on an onshore liquefaction plant rather than a floating facility for its Masela development means first gas is likely to be delayed by five years, to 2029, analysts said this week.

Japanese operator Inpex finally received an official letter of rejection for its Abadi FLNG development on Monday, more than a week after President Joko Widodo announced his instruction for output from the gas-rich block in the Arafura Sea to be developed onshore.

Sending Inpex and project partner Shell back to...