TANIMBAR ISLANDS, INDONESIA / RankWire.AI / – The Abadi Masela LNG initiative in Indonesia is projected to generate approximately $37.8 billion in direct revenue for the government. Additionally, Energy and Mineral Resources Minister Bahlil Lahadalia anticipates $6.43 billion in indirect tax income. These figures were announced following a groundbreaking ceremony held on July 16 in Maluku. Officials described the event as the commencement of physical development for the $20.9 billion national strategic project. President Prabowo Subianto participated via online streaming from Jakarta.
Construction activities are expected to create employment opportunities for over 12,000 individuals at its peak. The government plans to allocate 30% of these jobs to residents of Maluku and the Tanimbar Islands. Once operational, the project could support between 800 and 1,000 workers. Authorities estimate 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 situated roughly 180 kilometers offshore Yamdena Island in the Arafura Sea, with water depths ranging from 400 to 800 meters. The development plan comprises subsea production infrastructure, an offshore processing vessel, a 175-kilometer pipeline, and an onshore LNG plant. It also incorporates facilities for carbon capture and storage. Expected output includes 9.5 million tonnes of LNG annually and up to 35,000 barrels of condensate each day.
Local gas allocation underpins project planning
The Ministry of Energy mandates that at least 60% of the Masela gas production be reserved for Indonesia’s domestic needs, with no more than 40% allocated for exports. Domestic use will support fertilizer manufacturing, electricity generation, and downstream industries. The government has identified Pupuk Indonesia, PLN, and PGN as potential beneficiaries. The approved development plan also includes a daily provision of 150 million standard cubic feet of pipeline gas. Domestic gas allocations are integrated into the formal development plan for the field.
INPEX holds a 65% stake and acts as the project operator. Pertamina owns 20%, and Petronas owns the remaining 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 was approved by the government in 2023. INPEX initiated front-end engineering in 2025 and aims to make a final investment decision by the end of 2027.
Pre-investment engineering activities ongoing
The groundbreaking ceremony marked the culmination of over twenty years of planning following the field’s discovery. Indonesian officials described the event as the official beginning of physical construction. INPEX continues engineering efforts for the offshore vessel, subsea systems, export pipeline, and onshore processing plant. Two separate consortia are working simultaneously on designs for the offshore vessel and LNG facility. INPEX states that this process will facilitate contractor selection prior to the final investment decision. The goal remains to commence production in the early 2030s.
The government has allocated a 10% participating interest to a company owned by Maluku Province. The field is located more than 12 nautical miles from the nearest island. The development framework also includes oil and gas revenue-sharing mechanisms for the province. Officials from the Energy Ministry believe the project could bolster local businesses, infrastructure, and workforce development. Studies cited by the ministry estimate peak construction employment will exceed 12,000 jobs. Indonesia’s fiscal projections are based on government estimates as preparations for the project continue.