Inpex Corp, Japan's biggest oil and gas explorer, says it has received interest to buy liquefied natural gas from its USD 20 billion Abadi LNG project in Indonesia that exceeds planned output, its chief executive said.

The long-delayed project, set to produce up to 9.5 million metric tons of LNG annually, is expected to be a key growth driver for Inpex, which aims for a final investment decision in 2027.

"Non-binding inquiries from (potential buyers in) Indonesia, China, Taiwan, and other Asian countries have already exceeded Abadi's production volume," CEO Takayuki Ueda told Reuters in an interview on Tuesday.

"We are getting sufficient interest to start detailed design," he said, noting that Inpex will proceed with marketing and financing talks.

Inpex owns a 65% stake in the Abadi project in eastern Indonesia, with Indonesia's Pertamina and Malaysia's Petronas purchasing Shell's 35% holding in 2023.

For its flagship Ichthys LNG project in Australia, 90% of long-term contracts were with Japanese buyers, but that share will likely decline for Abadi due to strong demand from other countries, he said.

Despite Shell's exit, Inpex remains confident in its ability to operate Abadi.

Ueda added that total costs would be lower than Ichthys, despite rising engineering, procurement and construction expenses. Inpex estimates Ichthys' development cost at USD 40 billion, plus a small percentage.

In its three-year plan through 2027, Inpex will expand growth investment to 1.8 trillion yen (USD 12 billion), up from 1.2 trillion yen over the previous three years.

"Our priority is shifting to growth investment and shareholder returns from debt payment," Ueda said.

Of the total budget, 1.1 trillion yen will be allocated to existing projects, with more than half earmarked for bolstering crude output in the UAE with ADNOC, while the remainder will support maintaining Ichthys and other assets.

Aiming to increase its net LNG handling volume from 7.5 million tons now to 8.5 million tons by 2027, Inpex also is interested in buying U.S. LNG to diversify its portfolio, Ueda said, though it will decide after evaluating prices, flexibility, and potential labour cost increases.

On U.S. President Donald Trump's energy policy, Ueda said he would wait and see how it unfolds.

He declined to comment on the Alaska LNG project, but stressed that any upstream investment must be economically viable, citing past exits from unprofitable U.S. shale oil projects.

With gas use projected to extend beyond 2050, as outlined in Japan's latest energy plan, Inpex is committed to long-term supply, with LNG and carbon capture and storage (CCS) as core elements of its strategy, Ueda said.

"Since the Russia-Ukraine war, energy security has become more important, and natural gas is now globally recognised as a reliable and practical transition solution," he said.

Before the war, opposition from environmental advocates, banks and institutional investors had curbed fossil fuel development, including gas, due to stricter climate measures.

Inpex will carefully assess renewable energy investments amid rising costs and lower returns, but remains committed to its 2030 target of expanding renewable assets to 1-2 gigawatts, Ueda said.