Japan's Inpex Signs Gas Sales Agreement with Indonesia Gas Utility

A unit of Japan's Inpex Corp has made an agreement to sell natural gas from its Masela gas project to Indonesia's gas utility company, Indonesia's upstream oil and gas regulator said on Thursday.

A memorandum of understanding was signed between Inpex Masela Ltd and PT Perusahaan Gas Negara, but a spokeswoman for regulator SKK Migas said the size of the sale was still being discussed.

Indonesia approved last year Inpex's revised development plan for the $20 billion Masela project, which is among the biggest gas ventures in the Southeast Asian country.

It is expected to produce around 9.5 million tonnes of liquefied natural gas per year and supply 150 million cubic feet of natural gas daily through pipelines.

In February, Inpex signed an memorandum of understanding for gas supply with Indonesia's state electric company PT Perusahaan Listrik Negara and fertilizer maker PT Pupuk Indonesia.