InPex/Shell Indonesia Floating Gas Refinery Rejected

InPex (TYO:1605) and Royal Dutch Shell (NYSE:RDS.A) have hit a setback in the development of their $14.8 billion Indonesian gas project. According to the Wall Street Journal, the companies’ plan for a large floating refinery has been rejected.
As quoted in the publication:

Japan’s Inpex, the project’s planned operator, and partner Shell proposed six months ago to build a massive floating facility to exploit an offshore gas block known as Masela. The offshore plan had the support of Indonesia’s energy ministry, but late last year, ministers clashed over whether to instead force the project to pipe the gas to onshore facilities up to 600 kilometers away, which Inpex and Indonesia’s upstream oil-and-gas regulator said would add up to $7.5 billion to the cost.

Click here for the full Wall Street Journal article.