Offtake talks move forward for Southeast Asia’s $20 billion LNG project

May 21st, 2026

Japan’s exploration and production (E&P) company Inpex has shed light on the progress made in advancing discussions for liquefied natural gas (LNG) and pipeline gas offtake deals from a planned LNG project in Indonesia’s Masela block, which is seen as a way to fortify Southeast Asia’s energy security.

Abadi LNG; Source: Inpex

Inpex has reached multiple agreements in principle with energy players, including PT Pupuk Indonesia (Persero) for pipeline natural gas supply from the Abadi LNG project and BP, PT Perusahaan Gas Negara, PT PLN Energi Primer Indonesia, and Shell Eastern Trading for LNG offtake from the same project in the Masela Block offshore Indonesia.

The Japanese player is currently advancing the large-scale LNG project as operator through its subsidiary, Inpex Masela, in partnership with its joint venture partners, PT Pertamina Hulu Energi and Petronas Masela. The production sharing contract (PSC) is valid until November 15, 2055.

The company intends to work with prospective customers toward finalizing sale and purchase agreements (SPAs) that are collectively expected to cover a significant portion of the project’s anticipated LNG production volume.

The firm claims that the agreements in principle relating to LNG offtake represent an important milestone for the project and contribute to steady progress toward a final investment decision (FID).

The agreement in principle regarding pipeline natural gas supply is expected to lead to a gas sales agreement (GSA). The Abadi gas field is anticipated to support efficient development and stable production of LNG and pipeline gas over the long term.

“The discussions are also aligned with the Indonesian government’s focus on optimizing domestic natural resource utilization and are expected to support energy demand growth across the Asia-Pacific region,” underlined Inpex.