TANIMBAR ISLANDS, INDONESIA / RankWire.AI / – Indonesia anticipates that the Abadi Masela LNG project will generate approximately $37.8 billion in direct revenue for the government. Additionally, Energy and Mineral Resources Minister Bahlil Lahadalia projected $6.43 billion in indirect tax income. These figures were announced following a groundbreaking event on July 16 in Maluku, which marked the commencement of physical construction for the $20.9 billion national strategic project. President Prabowo Subianto attended the ceremony remotely from Jakarta.
According to officials, the construction phase could create employment for over 12,000 workers at its peak. A goal is to allocate 30% of these jobs to residents of Maluku and the Tanimbar Islands. Once operational, the project is expected to support between 800 and 1,000 jobs. The government estimates a contribution of $137.8 billion to Indonesia’s gross domestic product, with projections of $95 billion benefiting Maluku and $92 billion for the Tanimbar Islands.
The Abadi gas field is situated roughly 180 kilometers offshore 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 onshore LNG facilities. The project also features infrastructure for carbon capture and storage. Expected outputs are 9.5 million tonnes of LNG annually and up to 35,000 barrels of condensate per day.
Domestic Gas Allocation Underpins Project Planning
The Ministry of Energy mandates that at least 60% of the gas produced from Masela be allocated for domestic use, with a maximum of 40% exported. Domestic consumption is planned for fertilizer manufacturing, electricity generation, and downstream industries, with entities like Pupuk Indonesia, PLN, and PGN identified as potential beneficiaries. The approved development plan also includes the allocation of 150 million standard cubic feet of pipeline gas per day, integrated into the formal project development plan.
INPEX holds a 65% stake and operates the Abadi Masela LNG project. Pertamina has a 20% interest, while Petronas owns the remaining 15%. The production-sharing agreement extends until November 15, 2055. Discovered in 2000, the Abadi field received approval for onshore development in 2019, with a revised plan incorporating carbon storage approved in 2023. INPEX initiated front-end engineering in 2025 and aims for a final investment decision by the end of 2027.
Preliminary Engineering Progress Before Final Investment
Following over twenty years of planning since its discovery, the groundbreaking event signaled the beginning of physical construction. Indonesian officials characterized the ceremony as the official initiation of construction activities. Engineering work by INPEX continues for the offshore vessel, subsea systems, export pipeline, and onshore processing plant. Two consortiums are simultaneously designing the offshore vessel and LNG facility. INPEX states this process will facilitate contractor selection ahead of the final investment decision. The target remains to commence production in the early 2030s.
A 10% participating interest has been set aside for a Maluku Province-owned company. The field is located more than 12 nautical miles from the closest island. The project framework includes oil and gas revenue-sharing mechanisms for the province. The Ministry of Energy indicates that development could bolster local businesses, infrastructure, and workforce training. Studies cited by the ministry project construction employment exceeding 12,000 at peak. The fiscal estimates for Indonesia are based on government projections as project preparations advance.