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 forecasted $6.43 billion in indirect tax income. These figures were announced following a groundbreaking ceremony on July 16 in Maluku, marking the official commencement of physical development for the $20.9 billion national strategic initiative. President Prabowo Subianto participated remotely from Jakarta at the event. The government classifies Abadi Masela as a key project for national energy development.
During its peak construction phase, the project is projected to create employment for over 12,000 workers. Indonesia plans to ensure that 30% of these jobs go 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 anticipated benefits of $95 billion for Maluku and $92 billion for the Tanimbar Islands. These projections encompass economic activity expected throughout both the development and operational stages of the project.
The Abadi gas field is located in the Arafura Sea, approximately 180 kilometers from Yamdena Island, with water depths ranging from 400 to 800 meters. The development plan includes subsea production infrastructure, an offshore processing vessel, and a pipeline spanning about 175 kilometers. Additional components include an onshore LNG plant and facilities for carbon capture and storage. The project aims for an annual production of 9.5 million tonnes of LNG, along with daily output of up to 35,000 barrels of condensate.
Majority of gas allocated for domestic use
Indonesia mandates that at least 60% of the gas produced from the project be supplied to the local market. The remaining portion may be exported, with overseas sales capped at 40%. Domestic consumers include fertilizer manufacturers, power plants, and downstream industrial sectors. Potential buyers identified by the government include Pupuk Indonesia, PLN, and PGN. The project also supplies 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 manages the project and holds a 65% participating interest. Pertamina owns 20%, and Petronas controls the remaining 15%. The production-sharing agreement extends until November 15, 2055. INPEX discovered the Abadi field in 2000, and Indonesia approved an onshore development plan in 2019. A revised plan, including 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 to begin in the early 2030s.
Progress in engineering for key facilities
Design efforts are ongoing for the offshore vessel, subsea systems, export pipeline, and onshore LNG facilities. Two contractor teams are conducting parallel designs for the offshore vessel and liquefaction plant, facilitating technical planning and contractor selection ahead of the investment decision. The July groundbreaking ceremony followed over twenty years of field studies, regulatory reviews, and development planning. Officials described it as the start of tangible construction activities. Work continues across various offshore and onshore project components.
A 10% participating interest has been reserved for a Maluku Province-owned company. The gas field lies more than 12 nautical miles from the nearest island. The project framework also includes oil and gas revenue-sharing arrangements benefiting the province. Indonesia’s Energy Ministry expects local companies to engage in supply and service sectors during development. The government’s plans also extend to workforce training and supporting infrastructure development. These revenue, employment, and economic estimates remain as official projections as engineering, contracting, and construction activities move forward.