TANIMBAR ISLANDS, INDONESIA / RankWire.AI / – Indonesia anticipates that the Abadi Masela LNG project will generate approximately $37.8 billion in direct government revenue. Energy and Mineral Resources Minister Bahlil Lahadalia also estimated $6.43 billion in indirect tax earnings. These figures were announced following a groundbreaking ceremony on July 16 in Maluku, marking the official commencement of physical construction for the $20.9 billion national strategic project. President Prabowo Subianto participated remotely from Jakarta for the event. The government considers Abadi Masela a key national energy initiative.
During its peak activity, construction is projected to employ over 12,000 workers. Indonesia plans to assign 30% of those jobs to residents of Maluku and the Tanimbar Islands. Once operational, the project could support between 800 and 1,000 personnel. Authorities estimate that the project could boost Indonesia’s gross domestic product by $137.8 billion, with contributions of $95 billion to Maluku and $92 billion to the Tanimbar Islands. These projections account for economic activity throughout both the development and operational phases.
The Abadi gas field is situated 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 spanning roughly 175 kilometers. Additionally, the project encompasses an onshore liquefied natural gas plant and carbon capture and storage infrastructure. It aims for an annual production capacity of 9.5 million tonnes of LNG. Daily output is expected to reach up to 35,000 barrels of condensate.
Local gas demand prioritized
Indonesia mandates that at least 60% of the project’s gas supplies be allocated to the domestic market. The remaining 40% may be exported, with overseas sales limited accordingly. Domestic consumers are expected to include fertilizer producers, power plants, and downstream industrial sectors. Potential buyers identified by the government include Pupuk Indonesia, PLN, and PGN. The project will deliver 150 million standard cubic feet of pipeline gas daily. The domestic share was incorporated into the approved development framework by Indonesia’s Energy Ministry.
INPEX operates the project with a 65% stake. Pertamina owns 20%, while Petronas holds the remaining 15%. The production-sharing agreement is valid until November 15, 2055. INPEX discovered the Abadi field in 2000, and Indonesia approved an onshore development plan in 2019. A revised plan including carbon storage was approved in 2023. Front-end engineering activities commenced in 2025. INPEX aims to make a final investment decision by the end of 2027, with production beginning in the early 2030s.
Progress in engineering for key infrastructure
Engineering teams are ongoing with the offshore vessel, subsea systems, export pipeline, and onshore LNG facility. Two contractor groups are working simultaneously on the design of the offshore vessel and liquefaction plant. This parallel work will aid INPEX in finalizing technical plans and selecting contractors ahead of the investment decision. The July groundbreaking marked the start of physical construction after more than two decades of field studies, regulatory reviews, and planning. Preparation activities continue across various offshore and onshore components.
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 allocates oil and gas revenue-sharing funds for the province. Indonesia’s Energy Ministry expects local companies to participate in supply and service roles during development. The government’s plans also include workforce training and infrastructure support. These revenue, employment, and economic impact figures remain official projections as engineering, contracting, and construction activities advance.