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Shell's Floating LNG. Image courtesy of Royal Dutch Shell.

Japan-based Inpex received an environmental permit from Indonesia’s government Tuesday to continue developing its Floating LNG project.

The project is located in the offshore Abadi gas field and is being developed in partnership with Shell Upstream Overseas Services and Indonesia-based independent PT EMP Energi.

Inpex owns a 60 percent interest and operates the field.

Shell owns a 30 percent stake and PT EMP Energi owns a 10 percent stake.

The project’s partners are expected to invest US$19.6 billion in the facility.

Abadai LNG will include floating production and storage offloading (FPSO), baseload onshore LNG plants and LNG carriers.

It will also have an LNG loading plant, an LNG storage tank and a loading facility similar to those available on conventional FPSOs.

According to Shell, the FLNG facility for the first phase of the field’s development is currently being designed and the team is working on plans to develop the rest of the field.

First production of gas at Abadai is expected in 2018.

Initial output will be 2.5 million tonnes of LNG a year and 8,400 barrels per day of condensate.