Indonesia has accepted a proposal from Japan’s Inpex Holdings Inc to build a floating liquefied natural gas plant.
The company is already the sole operator of the Abadi gas field in the Masela block in Eastern Indonesia.
It estimates there are more than 10 trillion cubic feet of natural gas reserves within the field, giving it the potential to be one of Indonesia’s biggest fields.
According to Reuters, the project has received initial approval, but further evaluation will be undertaken to ensure the investment will prove lucrative.
If confirmed, the $19.6 billion (estimated) project would be the second largest new gas field after the Tangguh project in Papua.
Final approval is expected to be given before May, if positive, the plant is expected to be producing LNG in 2016.