TANIMBAR ISLANDS, INDONESIA / RankWire.AI / – Indonesia anticipates that the Abadi Masela LNG project will generate approximately $37.8 billion in direct revenue for the state. Energy and Mineral Resources Minister Bahlil Lahadalia also forecasted $6.43 billion in indirect tax income. These figures were announced following a groundbreaking ceremony held in Maluku on July 16. The event was celebrated as the commencement of physical development for the $20.9 billion national strategic initiative. President Prabowo Subianto participated remotely from Jakarta to observe the proceedings.
According to government officials, peak construction could create over 12,000 jobs. Of these, 30% are planned to be allocated to workers from Maluku and the Tanimbar Islands. Once operational, the project is expected to employ between 800 and 1,000 personnel. The government estimates the project will add $137.8 billion to Indonesia’s gross domestic product, with Maluku benefiting from $95 billion and the Tanimbar Islands from $92 billion.
Located roughly 180 kilometers offshore from Yamdena Island in the Arafura Sea, the Abadi gas field spans water depths between 400 and 800 meters. The development plan encompasses subsea production facilities, an offshore processing vessel, a 175-kilometer pipeline, and an onshore LNG plant. Additional components include carbon capture and storage systems. The project aims to produce 9.5 million tonnes of LNG annually and up to 35,000 barrels of condensate each day.
Domestic Gas Allocation as a Key Element of Project Planning
The Ministry of Energy mandates that at least 60% of the gas produced from Masela is allocated for domestic use, with a maximum of 40% designated for export. Domestic consumption will support fertilizer manufacturing, power generation, and downstream industries. Pupuk Indonesia, PLN, and PGN are among the potential domestic users identified. The approved development plan includes the provision of 150 million standard cubic feet of pipeline gas per day. The domestic gas share is incorporated into the formal development blueprint of the project.
INPEX holds a 65% stake and serves as the project operator. Pertamina owns 20%, while Petronas holds the remaining 15%. The current 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 incorporating carbon storage was authorized in 2023. Front-end engineering activities commenced in 2025, with a final investment decision expected by the end of 2027.
Ongoing Engineering Work Ahead of Investment Decision
The groundbreaking ceremony marked the culmination of over twenty years of planning following the discovery of the field. Indonesian officials described the event as the official start of physical construction. INPEX continues to advance engineering designs for the offshore vessel, subsea systems, export pipeline, and onshore processing plant. Two separate consortia are conducting parallel design activities for the offshore vessel and LNG facility. INPEX states this process will facilitate contractor selection before the final investment decision. The project aims for production to begin in the early 2030s.
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 revenue-sharing funds related to oil and gas for the province. The Ministry of Energy emphasizes that the development could bolster local businesses, infrastructure, and workforce training efforts. Studies cited by the ministry estimate peak construction employment will exceed 12,000. Indonesia’s fiscal outlook remains based on government estimates as project preparations move forward.