Japan's Inpex reaches milestone in $21 billion LNG project in Indonesia

What happened

Inpex finished the planning and engineering phase of its Abadi LNG project in Indonesia's Masela gas block. The project is expected to cost $21 billion, and Inpex will now work toward a final investment decision on whether to build it.

Confirmed

Global impact / market context

This is Indonesia's biggest gas project. Reaching this milestone moves it closer to a final investment decision, a formal go-ahead that unlocks construction spending. For Inpex, it tests whether a very large, long-delayed project can finally proceed.

Analyst inference

The project was delayed by requested design changes, the pandemic and a plan to add a carbon-capture facility, which means equipment to trap emissions. A regulator said investment could reach $22 billion, above Inpex's $21 billion estimate, so cost estimates may still rise.

Analyst inference

What to watch

1. Inpex aims to start production in early 2030, while the government has sought earlier delivery, so the timeline for first gas remains a key item to track. Confirmed
2. Indonesia's upstream oil and gas regulator hopes for a final investment decision by January 2027 at the latest; watch whether that approval target is met. Proposed
3. The regulator said investment could reach $22 billion versus Inpex's $21 billion estimate; watch whether cost estimates rise further, affecting Inpex's capital spending plans. Analyst inference

Evidence

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