Samsung E&A secures Indonesia’s Abadi LNG FEED contract, advancing eco-friendly production, CCS technology, and Southeast Asia presence with $26 million project.
On August 6, Samsung E&A announced it had secured a significant milestone by receiving a letter of award on August 5 for the front-end engineering and design (FEED) contract of the Inpex Abadi Onshore LNG Project in Indonesia. The contract was awarded by Inpex Masela, a subsidiary of Japan’s largest energy company, Inpex Corporation. Samsung E&A will execute the FEED phase in collaboration with KBR Indonesia and Adhi Karya, a state-owned Indonesian construction company.
Valued at approximately $26 million (around 36 billion Korean won), the contract is scheduled to be completed within 13 months. Upon successful completion, Samsung E&A aims to transition the project into a full-scale engineering, procurement, and construction (EPC) contract, thereby extending its role in the project’s lifecycle.
The LNG facility will be located in Saumlaki, Maluku Province, where natural gas from the Abadi gas field will be processed into liquefied natural gas and ultra-light condensate. The design capacity targets an annual output of 9.5 million tons of LNG along with a daily production of 35,000 barrels of condensate. A distinctive feature of this project is its eco-friendly approach—carbon emissions generated during production will be captured and stored in a nearby offshore block.
This environmental initiative has contributed to the Indonesian government designating the project as a national strategic undertaking. By engaging in this contract, Samsung E&A is not only bolstering its position in the rapidly expanding LNG market—seen as a transitional energy source amid global energy shifts—but also positioning itself in the emerging carbon capture and storage (CCS) sector, which is gaining traction worldwide as decarbonization efforts intensify.
LNG, as an energy source, emits significantly lower carbon dioxide compared to traditional fossil fuels and generates fewer pollutants due to its extensive purification process. The surging demand for energy—especially with the rapid advancement of artificial intelligence technologies—continues to drive investment and growth in LNG infrastructure. Meanwhile, CCS technology, which captures carbon from combustion processes and permanently stores it in depleted oil and gas reservoirs, is increasingly viewed as essential for achieving carbon neutrality targets.
Samsung E&A plans to leverage its proven track record, having successfully delivered more than 20 projects in Indonesia, along with its specialized engineering expertise, to ensure the Abadi LNG Project’s success. A company representative emphasized that their goal is to secure the subsequent EPC contract through the successful execution of the FEED stage. They added that the company intends to solidify its presence in Southeast Asia while expanding its technology-led contributions to both the LNG and CCS sectors.
