Japan’s Inpex in talks to build $18bn LNG plant in Indonesia

Japanese energy company Inpex is expected to agree in principle a deal with the Indonesian government to build an $18.4bn liquid natural gas (LNG) plant in the eastern Indonesian province of Maluku (pictured), the Nikkei Asian Review reports.

The plant, which would have an annual production of 9.5 million tons, would be one of the largest to be operated by a Japanese company. It would supply LNG to the domestic market, and take advantage of China’s interest in diversifying its energy supplies.

The plant would process gas from the Masela reserves in eastern Indonesia, which is 65% controlled by Inpex and 35% by Royal Dutch Shell, said Nikkei.

Inpex may sign the deal as early as Sunday if agreement on details can be reached with the Indonesians, Nikkei reported.

If a deal is reached, the plant is expected to go online in the late 2020s.

Global LNG demand is expected to jump from about 300 million tons in 2018 to 800 million by 2050.

Image: Indonesia’s Maluku, near Papua New Guinea (A Rabin/CC BY 2.0)

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