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. Additionally, Energy and Mineral Resources Minister Bahlil Lahadalia forecasted $6.43 billion in indirect tax income. The government revealed these figures following the groundbreaking ceremony held on July 16 in Maluku. Officials regarded this event as the commencement of physical development for the $20.9 billion national strategic initiative. President Prabowo Subianto participated remotely from Jakarta during the ceremony.
Construction is expected to create over 12,000 jobs at its peak, with plans to allocate 30% of these positions to workers from Maluku and the Tanimbar Islands. After production begins, operations could employ between 800 and 1,000 workers. Officials project the project will contribute $137.8 billion to Indonesia’s gross domestic product, with regional benefits of $95 billion for Maluku and $92 billion for the Tanimbar Islands.
The Abadi gas field is located 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 carbon capture and storage infrastructure. Estimated output comprises 9.5 million tonnes of LNG annually and up to 35,000 barrels of condensate daily.
Domestic gas share shapes project development
The Ministry of Energy mandates that at least 60% of the gas from Masela be allocated for Indonesia’s domestic needs, with a maximum of 40% available for export. Domestic uses include fertilizer manufacturing, electricity generation, and downstream industries. Potential users identified by the government include Pupuk Indonesia, PLN, and PGN. The approved development plan incorporates a daily supply of 150 million standard cubic feet of pipeline gas, which is officially included in the field’s formal development plan.
INPEX holds a 65% stake and is the operator of the Abadi Masela LNG project. Pertamina owns 20%, while Petronas has 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 approved by the government in 2023. Front-end engineering work commenced in 2025, with a final investment decision targeted by the end of 2027.
Engineering activities advance ahead of investment decision
The groundbreaking ceremony came after more than twenty years of planning following the field’s discovery. Indonesian officials described it as the official start of physical construction. INPEX continues engineering efforts for the offshore vessel, subsea systems, export pipeline, and onshore facilities. Two consortiums are conducting parallel design processes for the offshore vessel and LNG plant. INPEX states this will facilitate contractor selection prior to the final investment decision. Production is aimed for 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 oil and gas revenue-sharing arrangements for the province. The Ministry of Energy indicates that the development could boost local businesses, infrastructure, and workforce training. According to studies referenced by the ministry, construction employment could peak at over 12,000 jobs. Indonesia’s fiscal estimates are based on government projections as project preparations move forward.