TANIMBAR ISLANDS, INDONESIA / RankWire.AI / – The Abadi Masela LNG initiative in Indonesia is projected to 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, which officials described as the commencement of the physical development phase for the $20.9 billion national strategic project. President Prabowo Subianto participated virtually from Jakarta in the ceremony.
Construction is expected to create over 12,000 jobs at its peak, with plans to allocate 30% of these positions to residents of Maluku and the Tanimbar Islands. Once operational, the project could employ between 800 and 1,000 workers. Authorities estimate that the project will add $137.8 billion to Indonesia’s gross domestic product, with Maluku contributing $95 billion and the Tanimbar Islands $92 billion.
The Abadi gas field is located roughly 180 kilometers offshore Yamdena Island, in the Arafura Sea, with water depths ranging from 400 to 800 meters. The development plan includes subsea production systems, an offshore processing vessel, a 175-kilometer pipeline, and an onshore LNG plant, along with facilities for carbon capture and storage. The project aims to produce 9.5 million tonnes of LNG annually and up to 35,000 barrels of condensate each day.
Native Gas Allocation Shapes Project Development
The Ministry of Energy mandates that at least 60% of the gas from Masela be dedicated to the domestic market, with no more than 40% allocated for export. The domestic portion will cater to fertilizer manufacturing, power generation, and downstream industries, with entities like Pupuk Indonesia, PLN, and PGN identified as key consumers. The project plan also includes a daily allocation of 150 million standard cubic feet of pipeline gas, which has been incorporated into the formal development plan for the field.
INPEX owns a 65% stake and is the operator of the Abadi Masela LNG project. Pertamina holds 20%, while Petronas owns the remaining 15%. The production-sharing agreement extends until November 15, 2055. The Abadi field was discovered by INPEX in 2000, and Indonesia approved an onshore development plan in 2019. A revised plan incorporating carbon storage was approved by the government in 2023. Front-end engineering work began in 2025, with a final investment decision expected by the end of 2027.
Engineering Activities Advance Ahead of Investment Decision
The groundbreaking event marked the culmination of over twenty years of planning since the discovery of the field. Indonesian officials characterized the ceremony as the official launch of physical construction. Meanwhile, INPEX continues engineering work on the offshore vessel, subsea systems, export pipeline, and onshore facility. Two separate consortia are working concurrently on the design of the offshore vessel and LNG plant. INPEX states this process will facilitate contractor selection prior to making the final investment decision. The target remains to commence production in the early 2030s.
A 10% participating interest has been set aside for a company owned by Maluku Province. The project site is located more than 12 nautical miles from the nearest island. Additionally, the development plan includes revenue-sharing arrangements for oil and gas with the province. The Ministry of Energy indicates that the project could bolster local industries, infrastructure, and workforce training. Studies cited by the ministry estimate peak construction employment to exceed 12,000 jobs. Indonesia’s fiscal outlook remains based on government estimates as the project progresses through its preparatory stages.