Chiyoda, Indonesia's Synergy Get Abadi Pre-Feed

Japan’s Chiyoda Corporation and Indonesian Synergy Engineering have been awarded a pre-front end engineering development (pre-Feed) contract by Inpex Corporation for the Abadi onshore LNG project in the Arafura sea in Indonesia, the two companies said in a joint statement June 18. 

The contract is for subsea umbilicals risers and flowlines (Surf) and gas export pipeline facilities of the Abadi LNG project. Chiyoda and Synergy will jointly deliver various engineering, safety and cost studies and develop future Feed scope, as a pre-Feed package for Surf and gas export pipeline facilities, the companies said.

Xodus Group and Subsea 7 will work on specific studies as nominated subcontractors. Xodus, in which Chiyoda and Subsea 7 hold 40% and 60% shares respectively, will provide the technical leadership, as well as specific studies. Subsea 7 will focus on competitive installation solutions as a subsea engineering, procurement, construction and installation(Epic) contractor.

Owing to the remote location of the plant in eastern Indonesia, the original plan was to use floating liquefaction. In March 2016, the country's president Joko Widodo said production facilities of the LNG project will be built onshore, instead of offshore as Inpex had proposed. The source of the gas is the Masela block, for which the licence would ordinarily have expired in 2028. But last October Indonesia agreed to extend Inpex’s contract by up to 27 years from that date.