Japan’s Inpex Corp. has received government approval for the long-delayed Abadi natural gas production and LNG project in eastern Indonesia, which includes plans for carbon capture and sequestration (CCS) facilities.

With Indonesia’s rising domestic natural gas consumption and dwindling production, the country has been keen to develop its untapped resources to meet both international and domestic demand. The country is one of the world’s Top-10 LNG exporters. It shipped 14 million tons (Mt) of the super-chilled fuel to customers last year, according to the International Group of LNG Importers

“The Abadi field is a world class resource, but the development options are challenged by the 2,000-meter deep Timor Trough,” said Hewitt Energy Perspectives senior consultant...