Mon Dec 13, 2010 11:42am GMTJAKARTA Dec 13 (Reuters) - Indonesia...

Mon Dec 13, 2010 11:42am GMT

JAKARTA Dec 13 (Reuters) - Indonesia has approved a development plan for a liquefied natural gas floating terminal project run by Japan's biggest oil and gas explorer Inpex Corp , a senior energy official said on Monday.

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, said Evita Legowo, director general of oil and gas at the energy and mineral resources ministry.

The project will cost an estimated $4.9 billion.

Inpex has a majority stake in the Masela block in Maluku province while PT Energy Mega Persada , a unit of the Bakrie Group, has a 10 percent stake in the oil and gas block.

Former OPEC member Indonesia, which has far more gas than oil, has pushed companies to move faster in developing gas projects as the country badly needs the fuel for domestic industrial demand as well as for exports.

Lets hope this is this is the season for other LNG projects to have their LNG POD approved. I think EWC are going down the right path.