TANIMBAR ISLANDS, INDONESIA / RankWire.AI / – Indonesia anticipates that the Abadi Masela LNG project will generate approximately $37.8 billion in direct government income. Energy and Mineral Resources Minister Bahlil Lahadalia also forecasted $6.43 billion in indirect tax revenues. These figures were announced following a groundbreaking ceremony in Maluku on July 16, which officially marked the beginning of physical construction for the $20.9 billion national strategic initiative. President Prabowo Subianto participated remotely from Jakarta for the event. The government classifies the Abadi Masela project as a significant national energy development.
During its peak phase, construction is projected to create employment for over 12,000 individuals. Indonesia plans to ensure that 30% of these roles are filled by workers from Maluku and the Tanimbar Islands. Once operational, the project could sustain between 800 and 1,000 jobs. Officials estimate that the project might contribute $137.8 billion to Indonesia’s gross domestic product, with expected contributions of $95 billion to Maluku and $92 billion to the Tanimbar Islands. These estimates encompass the economic activity expected throughout the project’s development and operational periods.
The Abadi gas field is situated in the Arafura Sea, approximately 180 kilometers from Yamdena Island. Water depths across the offshore site range from 400 to 800 meters. The development plan includes subsea production facilities, an offshore processing vessel, and a pipeline stretching about 175 kilometers. Additional plans involve constructing an onshore liquefied natural gas (LNG) plant and facilities for carbon capture and storage. The project aims to produce 9.5 million tonnes of LNG annually, with daily condensate output reaching up to 35,000 barrels.
Majority of gas allocated for domestic consumption
Indonesia mandates that at least 60% of the gas produced from the project be supplied to the domestic market. The remaining 40% may be exported, with overseas sales capped at this percentage. Domestic consumers are expected to include fertilizer companies, power plants, and downstream industrial firms. Potential buyers identified by the government include Pupuk Indonesia, PLN, and PGN. The project will also deliver 150 million standard cubic feet of pipeline gas daily. The domestic allocation has been incorporated into the approved development framework by Indonesia’s Energy Ministry.
INPEX operates the project and holds a 65% stake, with Pertamina owning 20%, and Petronas controlling 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 including carbon storage approved in 2023. Front-end engineering work started in 2025. INPEX aims to make a final investment decision by the end of 2027, with production expected to begin in the early 2030s.
Progress in engineering of key facilities
Engineering teams are actively working on the offshore vessel, subsea systems, export pipeline, and onshore LNG facility. Two contractor groups are conducting parallel design processes for the offshore vessel and liquefaction plant, aiding INPEX in finalizing technical plans and selecting contractors ahead of the investment decision. The July groundbreaking marked the culmination of over two decades of field studies, regulatory assessments, and development planning. Officials described the event as the start of physical construction, with ongoing preparations across offshore and onshore components.
A 10% participating interest has been reserved for a company owned by Maluku Province. The field is located 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 expects local companies to engage in supply and service activities during development. The government’s plans also encompass workforce training and infrastructure support. All revenue, employment, and economic contribution projections are based on current estimates as engineering, contracting, and construction progress.