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7 Pages

Onshore LNG: Evaluating the options for Indonesia's Abadi

Onshore LNG: Evaluating the options for Indonesia's Abadi

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 includes 2 file(s)

  • Onshore LNG: Evaluating the options for Indonesia's Abadi PDF - 1.32 MB 7 Pages, 0 Tables, 4 Figures
  • Modelling assumptions.pdf PDF - 106.85 KB


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  • Executive summary
  • Background
  • Project economics
  • Enhanced project options
  • Risks and other implications
    • Development risks
    • Corporate impact
    • Domestic petrochemical options
    • Implications for Indonesia
    • Conclusion

In this report there are 4 tables or charts, including:

  • Executive summary
  • Background
    • Location of the Abadi field
  • Project economics
    • Cumulative contractor's cash flow
    • NPV and IRR
  • Enhanced project options
    • Government's share of revenue and contractor's IRR
  • Risks and other implications
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