Inpex mulls output increase for Masela gas project (Indonesia )

Inpex mulls output increase for Masela gas project (Indonesia )

Japanese energy group Inpex is considering expanding the production capacity
of its Masela gas field in eastern Indonesia, proposing to raise the
capacity of the LNG project to up to 9.5 Mt/year; the liquefaction project,
developed by Inpex (65%) and Shell (35%), was initially expected to produce
2.5 Mt/year and was later raised to 7.5 Mt/year.

In March 2016, the Indonesian president rejected plans to develop a US$15bn
floating LNG (FLNG) project to process gas from the Masela field,
considering that an onshore facility would be US$6bn cheaper than an FLNG
and preferring the project to be built onshore. Energy regulator SKK Migas
backed Inpex's calculations, considering than an onshore LNG plant would
cost US$4.5bn more than an FLNG. Consequently, Inpex decided to postpone the
final investment decision by two years, from 2018 to 2020. An onshore LNG
plant on the islands of Aru or Saumlaki in under consideration. The
anticipated start of production is not expected before the late 2020s.

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Ref:
http://www.enerdata.net/enerdatauk/press-and-publication/energy-news-001/inp
ex-mulls-output-increase-masela-gas-project-indonesia_38689.html

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com