TANIMBAR ISLANDS, INDONESIA / RankWire.AI / – The Abadi Masela LNG initiative in Indonesia is anticipated to generate approximately $37.8 billion in direct revenue for the government. Additionally, Energy and Mineral Resources Minister Bahlil Lahadalia projected that the project could bring in $6.43 billion in indirect tax income. These figures were announced after a groundbreaking event on July 16 in Maluku. Officials described the occasion as the commencement of physical development for the $20.9 billion national strategic project, with President Prabowo Subianto participating virtually from Jakarta.
Construction is expected to create over 12,000 jobs at its peak. The government plans to allocate 30% of these positions to local workers from Maluku and the Tanimbar Islands. Once operational, the project is projected to support 800 to 1,000 employees. Officials estimate that the project will add $137.8 billion to Indonesia’s gross domestic product, with Maluku benefiting by $95 billion and the Tanimbar Islands by $92 billion.
The Abadi gas field is situated approximately 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 facility. It also features 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.
Local gas allocation underpins project development
The Ministry of Energy mandates that at least 60% of the gas from Masela be dedicated to Indonesia’s domestic needs, with a maximum of 40% for export. Domestic use is planned for fertilizer manufacturing, power generation, and downstream industries, with potential customers including Pupuk Indonesia, PLN, and PGN. The formal development plan incorporates the allocation of 150 million standard cubic feet of pipeline gas daily, ensuring domestic requirements are met.
INPEX holds a 65% stake and is the operator of the Abadi Masela LNG project. Pertamina owns 20%, while Petronas holds 15%. The existing production-sharing contract is valid until November 15, 2055. Discovered in 2000, the Abadi field received Indonesian approval for onshore development in 2019, with a revised plan incorporating carbon storage approved in 2023. INPEX initiated front-end engineering in 2025 and aims to reach a final investment decision by the end of 2027.
Pre-investment engineering activities ongoing
Following over twenty years of planning since the discovery of the field, the groundbreaking symbolized the official start of physical construction, according to Indonesian officials. INPEX continues to advance engineering work on the offshore vessel, subsea systems, export pipeline, and onshore facilities. Two consortiums are engaged in parallel design efforts for the offshore vessel and LNG plant. This process is intended to facilitate contractor selection before the final investment decision. Production is targeted for the early 2030s.
A 10% participating interest has been reserved for a company owned by Maluku Province. The project site is located over 12 nautical miles from the nearest island. The development framework also includes oil and gas revenue-sharing arrangements for the province. The Ministry of Energy indicates that the project could bolster local businesses, infrastructure, and workforce training initiatives. According to studies cited by the ministry, peak construction employment could surpass 12,000 jobs. Indonesia’s fiscal projections are still estimates, subject to ongoing project preparations.