LNG Prices Fall, Inpex Afraid to Continue the Masela Project

By Editorial Team 03/07/2020
Inpex
Summary

The contractors of cooperation contract (KKKS) are hesitant to continue their gas projects in Indonesia because of the decline in world liquefied natural gas (LNG) prices. "At the moment, the price is US$ 2.2 per mmbtu. This is what frightens project owners like in the Abadi [Field] Masela [Blok] to execute projects onward," the Upstream Oil and Gas Regulatory Special Task Force (SKK Migas) Head Dwi Soetjipto said in a virtual discussion on Thursday (7/2).

However, Dwi is optimistic that the condition of Indonesia's upstream oil and gas industry will be better in the future. He even projects that LNG prices will rise again in December 2020. Previously, SKK Migas said that the Abadi Field project in the Masela Block this year had entered the stage of approval for the Environmental Impact Assessment (EIA). As of April, the process had reached 45.33 percent of its 47.96 percent target for that month.

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