Inpex to Build Large LNG Plant in Indonesia

Economy

Tokyo, June 17 (Jiji Press)--Major Japanese resources developer Inpex Corp. <1605> said Monday that it has reached a basic agreement with the Indonesian government to build a large-scale liquefied natural gas plant in the Southeast Asian nation.

Total investment will reach around 2 trillion yen, making the deal one of the largest LNG development projects led by Japanese companies.

With the project, Inpex aims to help ensure stable energy supplies after Thursday's attacks on two tankers, including one operated by a Japanese company, near the Strait of Hormuz, a strategic waterway for oil and gas, has reminded the international community of the importance of energy security.

In the project, pipelines will be laid to link the onshore LNG plant and the Masela gas field off the east coast of Indonesia.

The plant, which is slated to start operations in the second half of the 2020s, will produce about 9.5 million tons of LNG per year, equivalent to some 10 pct of Japan's annual LNG imports, according to Inpex.

[Copyright The Jiji Press, Ltd.]

Jiji Press