UPDATE 1-Inpex delays Indonesia LNG output start by 2 years

Tue Dec 21, 2010 8:04am GMT

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* Abadi project to start output in 2018 -Inpex

* Inpex sees final investment decision by end of 2013 (Adds details)

TOKYO Dec 21 (Reuters) - Japan's top oil and gas developer, Inpex Corp (1605.T), said on Tuesday it now sees the start of liquefied natural gas (LNG) production from the Inpex-operated Abadi gas field in the Masela block of the Timor Sea in 2018, delayed from the previous plan of 2016.

Indonesia has approved an initial development plan for a liquefied natural gas floating terminal for the project. The floating LNG project will have capacity of 2.5 million tonnes per year, lower than a previously proposed capacity of 4.5 million tonnes. [ID:nL3E6ND0S2

An Inpex spokesman said the final investment decision would be made by the end of 2013.

Inpex has a 90 percent stake in the Masela block in Maluku province while PT Energy Mega Persada (ENRG.JK), a unit of the Bakrie Group, holds the rest. (Reporting by Osamu Tsukimori; Editing by Michael Watson)