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. This event marked the official commencement of physical development for the $20.9 billion national strategic project. President Prabowo Subianto participated in the ceremony remotely from Jakarta. The government designates Abadi Masela as a key national energy development.
During its peak construction phase, the project is projected to create employment for over 12,000 workers. Indonesia plans to assign 30% of these jobs to residents of Maluku and the Tanimbar Islands. Once operational, the facility could support between 800 and 1,000 employees. Officials estimate the project could 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 projections encompass economic activity throughout both the development and operational periods of the project.
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 equipment, an offshore processing vessel, and a pipeline spanning about 175 kilometers. Additionally, it involves constructing an onshore liquefied natural gas plant and carbon capture and storage facilities. The project aims for an annual LNG output of 9.5 million tonnes and a daily condensate production of up to 35,000 barrels.
Majority of Gas for Domestic Consumption
Indonesia mandates that at least 60% of the project’s gas supplies be allocated for domestic use. The remaining 40% may be exported, with overseas sales capped at that percentage. Intended domestic consumers include fertilizer producers, 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 with a 65% stake. Pertamina owns a 20% share, while Petronas controls the remaining 15%. The production-sharing agreement 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 that includes carbon storage was approved in 2023. Front-end engineering activities commenced in 2025. INPEX aims to make a final investment decision by the end of 2027, with production expected in the early 2030s.
Progress in Engineering for Core Facilities
Engineering teams are advancing work on the offshore vessel, subsea systems, export pipeline, and onshore LNG facility. Two contractors are conducting parallel design processes for the offshore vessel and liquefaction plant. This approach will facilitate the completion of technical plans and contractor selection prior to the final investment decision. The July groundbreaking marked the beginning of physical construction after more than twenty years of field studies, regulatory evaluations, and development planning. Engineering efforts are ongoing across various offshore and onshore components.
A 10% participating interest has been allocated for a company owned by Maluku Province. The offshore field is located more than 12 nautical miles from the nearest island. The project framework also includes provisions for oil and gas revenue-sharing funds for the province. Indonesia’s Energy Ministry expects local firms to participate in supply and service activities during the project’s development. The government’s plans also emphasize workforce training and infrastructure support. These revenue, employment, and economic contribution estimates remain official projections as engineering, contracting, and construction activities continue to advance.