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 tax revenues. These figures were announced following the groundbreaking event held on July 16 in Maluku. Officials characterized this occasion as the commencement of physical development for the $20.9 billion national strategic initiative. President Prabowo Subianto participated in the ceremony via online broadcast from Jakarta.
The government anticipates that peak construction could create employment for over 12,000 individuals. Aiming to support local employment, 30% of these jobs are planned to be filled by residents of Maluku and the Tanimbar Islands. Once operational, the project is expected to sustain 800 to 1,000 jobs. Authorities estimate a contribution of $137.8 billion to Indonesia’s gross domestic product, with Maluku expected to benefit by $95 billion and the Tanimbar Islands by $92 billion.
The Abadi gas field is situated roughly 180 kilometers off the coast of Yamdena Island in the Arafura Sea, with water depths ranging from 400 to 800 meters. The development plan includes subsea production systems, an offshore processing vessel, a 175-kilometer pipeline, and an onshore LNG facility. It also features carbon capture and storage infrastructure. Expected outputs are 9.5 million tonnes of LNG per year and up to 35,000 barrels of condensate daily.
Focus on Domestic Gas Supply Shapes Project Strategy
The Ministry of Energy mandates that at least 60% of the gas produced from Masela be allocated for Indonesia’s domestic market, with no more than 40% designated for export. Domestic use includes fertilizer manufacturing, electricity production, and downstream industries. Potential domestic consumers include Pupuk Indonesia, PLN, and PGN. The plan also allocates 150 million standard cubic feet of pipeline gas daily, which has been incorporated into the formal development plan for the field.
INPEX holds a 65% stake and operates the Abadi Masela LNG project. Pertamina owns 20%, and Petronas holds the remaining 15%. The production-sharing agreement extends until November 15, 2055. INPEX first discovered the Abadi field in 2000, and Indonesia approved an onshore development plan in 2019. A revised plan including carbon storage was approved in 2023. Engineering activities by INPEX began in 2025, with a final investment decision expected by the end of 2027.
Preparatory Engineering Work Continues Ahead of Investment Decision
Following over twenty years of planning since the field’s discovery, the groundbreaking event marked the official start of physical construction, according to Indonesian officials. INPEX is advancing engineering designs for the offshore vessel, subsea systems, export pipeline, and onshore processing plant. Two separate consortia are conducting parallel design efforts for the offshore vessel and LNG plant. INPEX notes that these activities will facilitate contractor selection before making the final investment decision. The target remains to commence production in the early 2030s.
A 10% participating interest has been set aside for a company owned by Maluku Province. The field is located more than 12 nautical miles from the nearest island. The project framework encompasses oil and gas revenue-sharing arrangements for the province. The Ministry of Energy emphasizes that the development could bolster local businesses, infrastructure, and workforce skills. Studies highlighted by the ministry project peak construction employment exceeding 12,000 workers. Indonesia’s fiscal projections are based on government estimates as preparations for the project move forward.