TANIMBAR ISLANDS, INDONESIA / RankWire.AI / – The Abadi Masela LNG project in Indonesia is projected to generate approximately $37.8 billion in direct revenue for the government. Additionally, Energy and Mineral Resources Minister Bahlil Lahadalia estimated that the project could bring in $6.43 billion in indirect taxes. These figures were announced following a groundbreaking ceremony held on July 16 in Maluku. Officials described the event as the commencement of physical construction for the $20.9 billion national strategic initiative. President Prabowo Subianto attended the ceremony remotely from Jakarta.
According to government estimates, peak construction activity could create employment for over 12,000 individuals. A target of 30% of these jobs is set aside for workers from Maluku and the Tanimbar Islands. Once operational, the project is expected to support 800 to 1,000 jobs. Authorities also project that the project will contribute $137.8 billion to Indonesia’s gross domestic product, with Maluku benefiting by $95 billion and the Tanimbar Islands by $92 billion.
The Abadi gas field is located roughly 180 kilometers offshore Yamdena Island in the Arafura Sea. Water depths in the area vary from 400 to 800 meters. The development plan includes subsea production systems, an offshore processing vessel, a 175-kilometer pipeline, and an onshore LNG plant. The project also features facilities for carbon capture and storage. Planned output comprises 9.5 million tonnes of LNG per year and up to 35,000 barrels of condensate daily.
Focus on Local Gas Distribution Shapes Project Development
A minimum of 60% of the gas produced from Masela is mandated by the Energy Ministry to be allocated for Indonesia’s domestic market, with exports limited to no more than 40%. Domestic use is intended for fertilizer manufacturing, electricity generation, and downstream industries. Potential consumers include Pupuk Indonesia, PLN, and PGN. The official development plan also allocates 150 million standard cubic feet of pipeline gas daily, with the domestic gas portion integrated into the field’s formal development framework.
INPEX holds a 65% stake and manages the Abadi Masela LNG project. Pertamina owns 20%, while Petronas holds 15%. The production-sharing contract is valid until November 15, 2055. INPEX discovered the Abadi field in 2000, and Indonesia approved an onshore development plan in 2019. A revised plan incorporating carbon storage received approval in 2023. Front-end engineering work began in 2025, with a final investment decision targeted before the end of 2027.
Engineering Activities Continue Ahead of Investment Decision
The groundbreaking event followed more than twenty years of planning since the field’s discovery. Indonesian officials described the ceremony as the formal initiation of physical construction activities. INPEX is advancing engineering efforts for the offshore vessel, subsea systems, export pipeline, and onshore processing facility. Two consortiums are conducting parallel design studies for the offshore vessel and LNG plant. INPEX states this process will aid in selecting contractors prior to making the final investment decision. Production is expected to commence in the early 2030s.
A 10% participating interest has been reserved for a company owned by Maluku Province. The field, located more than 12 nautical miles from the closest island, is part of a broader project framework that includes oil and gas revenue-sharing arrangements for the province. The Ministry of Energy indicates that the development could bolster local businesses, infrastructure, and workforce training. According to studies cited by the ministry, construction employment could peak at over 12,000 jobs. Indonesia’s fiscal forecasts remain provisional, subject to ongoing project preparations.