Jakarta puts pressure on Inpex-Shell Masela LNG
The Inpex-Shell JV had plans for an FLNG vessel in Indonesia, which were supported by regulator SKKMigas. (SKKMigas)
The Indonesian government is pressuring Inpex and Shell to accelerate development of their proposed deepwater Masela LNG project and slash capital expenditure. But despite the government’s bluster, the project looks indefinitely stalled.
Indonesia’s acting Energy and Mineral Resources Minister Luhut Pandjaitan told local media the proposed Inpex-Shell Masela LNG scheme could be built with just $7 billion of investment. However, experts believe this to be unlikely.