Onshore LNG: Evaluating the options for Indonesia's Abadi
Loading current market price
Report summary
The future of the remote, 20-tcf Abadi gas field offshore Indonesia has become more uncertain. In March 2016, INPEX's proposed 7.5-mmtpa FLNG US$15 billion development was rejected by the Indonesian government, in favour of an onshore LNG plant to boost local content. However, the increased costs associated with an onshore development could have a significant impact on project economics. We estimate a 7.5-mmtpa onshore project generates an IRR of 9.9%, versus 14.6% for the FLNG concept. In the current industry environment, the PSC partners would be unlikely to take on the considerable risks of a remote greenfield development unless it has clear terms and robust economics. We compare several incentives Indonesia could implement to make the onshore development more attractive.
What's included
This report contains
Table of contents
- Executive summary
- Background
- Project economics
- Enhanced project options
-
Risks and other implications
- Development risks
- Corporate impact
- Domestic petrochemical options
- Implications for Indonesia
- Conclusion
Tables and charts
This report includes 4 images and tables including:
Images
- Location of the Abadi field
- Cumulative contractor's cash flow
- NPV and IRR
- Government's share of revenue and contractor's IRR
You may be interested in
Sinopec Group corporate - latest WM quarterly data
Total corporate - latest WM quarterly data
Shell corporate - latest WM quarterly data
Questions about this report?
-
Europe:+44 131 243 4699
-
Americas:+1 713 470 1900
-
Asia Pacific:+61 2 8224 8898