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. The figures were announced following a groundbreaking ceremony on July 16 in Maluku. This event marked the official commencement of physical development for the $20.9 billion national strategic project. President Prabowo Subianto participated remotely from Jakarta. The government designates Abadi Masela as a key national energy initiative.
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 those jobs to residents of Maluku and the Tanimbar Islands. Once operational, the project is projected to support between 800 and 1,000 jobs. Officials believe the project could boost Indonesia’s gross domestic product by $137.8 billion. Additionally, it is expected to contribute $95 billion to Maluku and $92 billion to the Tanimbar Islands. These projections cover economic activity throughout the development and operational periods of the project.
The Abadi gas field is located in the Arafura Sea, approximately 180 kilometers from Yamdena Island. Water depths at the offshore site range from 400 to 800 meters. Development plans include subsea production equipment, an offshore processing vessel, and a pipeline approximately 175 kilometers long. The project also envisions an onshore liquefied natural gas plant and facilities for carbon capture and storage. The target is an annual production of 9.5 million tonnes of LNG, along with a daily output of up to 35,000 barrels of condensate.
Majority of gas allocated for domestic consumption
Indonesia mandates that at least 60% of the gas produced be supplied to the domestic market. The remaining portion may be exported, with a limit of 40% for overseas sales. Intended domestic consumers include fertilizer manufacturers, power plants, and downstream industrial firms. The government has identified potential buyers such as Pupuk Indonesia, PLN, and PGN. The project will also deliver 150 million standard cubic feet of pipeline gas daily. The Indonesian Energy Ministry included this domestic allocation within the approved development framework.
INPEX operates the project, holding a 65% stake. Pertamina owns 20%, and Petronas controls the remaining 15%. The production-sharing contract extends until November 15, 2055. INPEX discovered the Abadi field in 2000, and Indonesia approved an onshore development plan in 2019. A revised plan, which incorporated carbon storage, was approved in 2023. Front-end engineering work commenced in 2025. INPEX aims to reach a final investment decision by the end of 2027, with production targeted for the early 2030s.
Progress in engineering for key facilities
Engineering activities are ongoing for the offshore vessel, subsea systems, export pipeline, and onshore LNG facility. Two contractor teams are conducting parallel design processes for the offshore vessel and liquefaction plant. This approach helps INPEX finalize technical plans and select contractors prior to the investment decision. The July groundbreaking marked the beginning of physical construction after more than twenty years of field studies, regulatory assessments, and planning. Work continues on various offshore and onshore components.
A 10% participating interest has been allocated to a company owned by Maluku Province. The field is situated more than 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 anticipates local companies will participate in supply and service roles during development. The government’s plans also encompass workforce training and infrastructure development. These figures related to revenue, employment, and economic impact remain projections as the engineering, contracting, and construction phases advance.