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Japanese energy company INPEX Corporation has recently initiated a key tender process for its long-anticipated liquefied natural gas (LNG) development in the Masela Block offshore Indonesia, marking significant forward momentum toward a planned final investment decision (FID) as early as 2027 on the project valued at roughly US $19 billion.
The tender, aimed at securing contractors for critical project management consultancy and engineering support, is part of a broader effort by INPEX Masela Ltd. — the project operator — and its partners to advance front-end engineering and design (FEED) work for the Abadi LNG development. This move is complemented by earlier awards of FEED contracts for major components including FPSO modules, subsea systems, export pipelines and onshore LNG facilities.
The Abadi LNG project, located in the Arafura Sea approximately 170–180 km southwest of the Tanimbar Islands in eastern Indonesia, is one of Southeast Asia’s largest gas developments and has been in preparation for decades. Governed under a production sharing contract that extends through 2055, the field holds significant natural gas reserves targeted for both export and domestic supply.
Once fully developed, the project is expected to:
Produce ~9.5 million tonnes per annum (mtpa) of LNG at peak capacity.
Deliver up to 150 million cubic feet per day of pipeline gas to Indonesia’s domestic market.
Generate as much as 35,000 barrels per day of condensate.
These volumes will make Abadi a strategic contributor not only to Indonesia’s national energy security but also to regional LNG supply dynamics, supporting Asian markets with cleaner-burning natural gas amid ongoing global energy transitions.
The project’s development sequence is now centered on completing FEED — a critical step before EPC (engineering, procurement and construction) tenders begin later in 2026. FEED scopes already underway cover:
Onshore LNG processing facilities with dual production trains.
Floating Production Storage and Offloading (FPSO) units for offshore processing.
Subsea systems (SURF) including risers, flowlines and umbilicals.
Gas export pipelines that will deliver wellstream to onshore plants.
Parallel contracts for these scopes have been awarded to global engineering groups, including JGC Holdings, Technip Energies and other joint ventures, reflecting international contractor interest and competitive procurement strategies.
As project activities escalate toward FEED completion and EPC awards, substantial demand will emerge across the oil & gas materials supply chain — particularly for components that require high-performance alloys, corrosion-resistant surfaces, and precision fabrication.
Critical material needs likely include:
Clad plates and corrosion-resistant steel for LNG heat exchangers, cryogenic equipment and pressure vessels. These materials are essential in units handling cooled, pressurized gas and liquids at low temperatures.
Nickel alloys, duplex stainless steels and exotic liners for subsea infrastructure such as risers, flowlines, and manifolds. Such environments demand high resistance to corrosion, H₂S, and CO₂.
Fabricated components for gas processing units, including columns, trays, and piping that interface with both upstream production and LNG trains.
For a manufacturer like FUGO TECH, which specializes in clad plates, bimetallic transition joints, and high-grade alloy products, this project represents a potential participation opportunity — particularly where specification calls for durable, weldable, and corrosion-resistant materials that meet international standards for LNG service.
The Abadi LNG venture has evolved over years with changes in partners and technical plans. While earlier participants like Shell exited the project, national oil companies Pertamina and PETRONAS joined in recent years, diversifying the technical and financial base for development.
Indonesia’s government views the project as a national strategic priority, citing its potential to bolster energy independence, provide export revenue, and support regional infrastructure growth. The inclusion of carbon capture and storage (CCS) features in the development plan also underscores an effort to improve environmental performance over the long term.
In summary, INPEX’s tender launch is more than a procurement milestone — it signals that one of Asia’s most significant LNG developments is transitioning from planning toward execution, opening broad opportunities for global contractors and material suppliers capable of meeting stringent petrochemical and LNG specifications.
Nanjing Fugo New Material Tech Co., Ltd. (Fugo Tech) is an ISO 9001 and PED 2014/68/EU certified manufacturer specializing in Clad Material (Explosive Clad Plates & Rolled Clad Plates/Clad Dish Heads/Clad Tube Sheets) and Titanium, Nickel Alloy, Copper Alloy and Stainless Steel products (Pipe/Tube/Fitting/Flange/Forging) which are widely used in the Heat Exchanger, Pressure Vessel, Reactor, Column, Tower, and other process equipment.
Fugo Tech offers different material combinations of Clad Plate (Explosion-welded clad plate/composite plate & Rolled-welded clad plate/composite plate) , and also offers a wide range of materials, including Titanium, Nickel Alloy, Copper, Cu-Ni, and Stainless Steel, along with custom processing services (Tube Sheet drilling, and Dish Head forming) for Oil & Gas, Petrochemical, Chemical, Energy, Paper & Pulp, Marine, Shipbuilding, Environment, Metallurgy, and New Energy Vehicles, with a strong focus on high-performance Clad Plate & Titanium & Nickel Alloy & Stainless Steel solutions.
For any new requirement, please contact: sales@fugo-tech.com
Fugo Tech is focused on the manufacturing of clad metal plate and distributes the Stainless Steel, Titanium, Nickel Alloy, Zirconium and other non-ferrous metal pipes, fittings, flanges, and fasteners.
