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. Energy and Mineral Resources Minister Bahlil Lahadalia also estimated $6.43 billion in indirect tax income. These figures were announced following a groundbreaking ceremony held on July 16 in Maluku. The event marked the official commencement of physical construction for the $20.9 billion national strategic initiative. President Prabowo Subianto participated remotely from Jakarta. The government categorizes Abadi Masela as a key project for national energy development.
During its peak construction phase, the project could create employment for over 12,000 workers, according to government estimates. Indonesia intends 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 employees. Officials project that the development could contribute $137.8 billion to Indonesia’s gross domestic product, with additional benefits of $95 billion for Maluku and $92 billion for the Tanimbar Islands. These projections cover economic activity throughout both the construction and operational periods of the project.
The Abadi gas field is located in the Arafura Sea, roughly 180 kilometers from Yamdena Island. Water depths range from 400 to 800 meters across the offshore site. The development plan includes subsea production systems, an offshore processing vessel, and a pipeline approximately 175 kilometers long. Also planned are an onshore LNG plant and facilities for carbon capture and storage. The project aims to produce 9.5 million tonnes of LNG annually, with a daily condensate output of up to 35,000 barrels.
Priority for Domestic Gas Supply
Indonesia mandates that at least 60% of the gas from the project be supplied to the domestic market. The remaining 40% may be exported, with overseas sales capped at that percentage. Domestic consumers are expected to include fertilizer manufacturers, power plants, and downstream industrial companies. The government has identified potential buyers such as Pupuk Indonesia, PLN, and PGN. Additionally, the project will deliver 150 million standard cubic feet of pipeline gas daily. The domestic allocation has been incorporated into the approved development plan by Indonesia’s Energy Ministry.
INPEX operates the project and holds a 65% stake. Pertamina owns 20%, while Petronas controls 15%. The production-sharing contract 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 received approval in 2023. Front-end engineering work started in 2025. INPEX aims to reach a final investment decision by the end of 2027, with production expected in the early 2030s.
Progress in Engineering for Main Facilities
Design activities are ongoing for the offshore vessel, subsea systems, export pipeline, and onshore LNG facilities. Two contracting groups are conducting parallel design efforts for the vessel and liquefaction plant, aiding INPEX in finalizing technical plans and selecting contractors ahead of the investment decision. The July groundbreaking marked the beginning of physical construction after more than two decades of studies, regulatory reviews, and planning. Meanwhile, project preparation continues across various offshore and onshore components.
A 10% participating interest has been reserved for a company owned by Maluku Province. The field is situated over 12 nautical miles from the nearest island. The project framework also includes oil and gas revenue-sharing arrangements for the province. Indonesia’s Energy Ministry expects local companies to participate in supply and service activities during development. The government also plans to invest in workforce training and supporting infrastructure. These figures for revenue, employment, and economic impact remain as official projections as engineering, contracting, and construction activities advance.