Abadi LNG's Future in Question After Indonesia Changes Location
- Widodo wants $14 billion terminal built on Saumlaki island
- Delay comes as LNG prices have fallen 42% in past year
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An Indonesian government ruling on the location of a proposed $14 billion liquefied natural gas project has raised questions about its viability amid a global price crash.
Indonesia wants Japan’s Inpex Corp. to build its Abadi LNG facility on a remote eastern island to help the local economy, instead of offshore as the company planned. The decision means Inpex will have to submit a new development plan to the government, possibly delaying its investment decision by four years to 2022. An Inpex spokesman said the company is still aiming for early start up of the development.