TANIMBAR ISLANDS, INDONESIA / RankWire.AI / – Indonesia anticipates that the Abadi Masela LNG initiative will generate approximately $37.8 billion in direct revenue for the government. Additionally, Energy and Mineral Resources Minister Bahlil Lahadalia forecasted $6.43 billion in indirect tax income. These figures were announced following a groundbreaking event on July 16 in Maluku. Officials regarded this event as the commencement of physical construction for the $20.9 billion national strategic project, with President Prabowo Subianto attending virtually from Jakarta.
The government estimates that peak construction could create employment for over 12,000 individuals. A goal is to allocate 30% of these jobs to residents of Maluku and the Tanimbar Islands. Once operational, the project is expected to support 800 to 1,000 workers. Authorities project a contribution of $137.8 billion to Indonesia’s gross domestic product, along with estimates of $95 billion for Maluku and $92 billion for the Tanimbar Islands.
The Abadi gas field is situated roughly 180 kilometers offshore Yamdena Island in the Arafura Sea, with water depths ranging from 400 to 800 meters. The development plan encompasses subsea production infrastructure, an offshore processing vessel, a 175-kilometer pipeline, and an onshore LNG facility. It also involves 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.
Local gas distribution influences project planning
Indonesia’s Energy Ministry mandates that at least 60% of the gas from Masela serve the domestic market, with no more than 40% allocated for export. The domestic share is intended for applications such as fertilizer manufacturing, power generation, and downstream industries. Notable potential users include Pupuk Indonesia, PLN, and PGN. The approved development plan also allocates 150 million standard cubic feet of pipeline gas daily. This domestic gas provision is formally incorporated into the project’s development blueprint.
INPEX holds a 65% stake and acts as the operator for the Abadi Masela LNG project. 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 an onshore development plan received approval from Indonesia in 2019. A revised plan, including carbon storage, was sanctioned in 2023. Front-end engineering work commenced in 2025, with a final investment decision targeted for the end of 2027.
Pre-investment engineering activities ongoing
Following more than twenty years of planning after the discovery, the groundbreaking signifies the formal start of physical construction, according to Indonesian officials. Indonesian authorities described the event as the official beginning of construction activities. INPEX continues engineering efforts for the offshore vessel, subsea systems, export pipeline, and onshore plant. Two separate consortia are working simultaneously on the design of the offshore vessel and LNG facility. INPEX states that this process will aid in selecting contractors ahead of the final investment decision. The goal remains to commence production in the early 2030s.
A 10% participating interest has been set aside 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 revenue-sharing arrangements for oil and gas with the province. The Energy Ministry emphasizes that development could benefit local businesses, infrastructure, and workforce training. Studies cited by the ministry estimate that peak construction employment will surpass 12,000 jobs. Indonesia’s fiscal forecasts are based on government estimates as project preparations progress.