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 after 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 remotely from Jakarta. The government designates Abadi Masela as a key national energy project.
During its peak construction phase, the project is projected to create employment opportunities 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 project could provide jobs for between 800 and 1,000 personnel. Officials believe the initiative could boost Indonesia’s gross domestic product by $137.8 billion. Additionally, they anticipate contributions of $95 billion to Maluku and $92 billion to the Tanimbar Islands. These estimates cover economic activity throughout the development and operational phases of the project.
The Abadi gas field is located in the Arafura Sea, approximately 180 kilometers from Yamdena Island. Water depths across the offshore site range from 400 to 800 meters. Development plans include subsea production facilities, an offshore processing vessel, and a pipeline approximately 175 kilometers long. The project also involves constructing an onshore liquefied natural gas (LNG) plant and carbon capture and storage (CCS) infrastructure. The target annual output is 9.5 million tonnes of LNG, with daily condensate production reaching up to 35,000 barrels.
Local Gas Will Dominate Domestic Market
Indonesia mandates that at least 60% of the gas from the project be supplied to the domestic market. The remaining portion may be exported, with overseas sales capped at 40%. Domestic consumers are expected to include fertilizer manufacturers, power plants, and downstream industrial firms. Among potential buyers are Pupuk Indonesia, PLN, and PGN, as identified by the government. The project will also deliver 150 million standard cubic feet of pipeline gas per day. The domestic allocation was incorporated into the approved development framework by Indonesia’s Energy Ministry.
INPEX operates the project and holds a 65% participating interest. Pertamina controls 20%, while Petronas owns the remaining 15%. The production-sharing contract remains valid until November 15, 2055. INPEX first discovered the Abadi field in 2000, and Indonesia approved an onshore development plan in 2019. A revised plan including carbon storage received approval in 2023. Front-end engineering work started in 2025. The company aims to make a final investment decision by the end of 2027, with production expected in the early 2030s.
Progress in Engineering for Key Facilities
Design and engineering activities continue on the offshore vessel, subsea infrastructure, export pipeline, and onshore LNG facilities. Two contractor groups are working in parallel on the design of the offshore vessel and the liquefaction plant. This approach facilitates the completion of technical plans and contractor selection ahead of the final investment decision. The July groundbreaking marked the culmination of over twenty years of field assessments, regulatory reviews, and development planning. Government officials described the event as the start of actual construction, with ongoing progress across 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 landmass. Revenue-sharing arrangements for oil and gas profits also include funds designated for the province. Indonesia’s Energy Ministry expects local companies to participate in supply chain and service activities during development. The government’s plans also focus on workforce training and infrastructure support. The projected revenue, employment, and economic impacts remain based on official forecasts as engineering, contracting, and construction activities advance.