TANIMBAR ISLANDS, INDONESIA / RankWire.AI / – The Abadi Masela LNG project in Indonesia is projected to bring in approximately $37.8 billion in direct revenue to the government. Additionally, Energy and Mineral Resources Minister Bahlil Lahadalia has estimated $6.43 billion in indirect tax revenues. These figures were disclosed following a groundbreaking ceremony on July 16 in Maluku. Officials characterized the event as the commencement of physical development for the $20.9 billion national strategic initiative. President Prabowo Subianto participated remotely from Jakarta for the occasion.
Construction is expected to generate employment for over 12,000 workers at its peak, with 30% of these positions designated for residents of Maluku and the Tanimbar Islands. Once operational, the project could provide jobs for 800 to 1,000 personnel. Officials forecast a contribution of $137.8 billion to Indonesia’s gross domestic product, along with estimated benefits of $95 billion for Maluku and $92 billion for the Tanimbar Islands.
The Abadi gas deposit 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 extraction systems, an offshore processing vessel, a 175-kilometer pipeline, and an onshore LNG facility. It also features carbon capture and storage infrastructure. 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 Drives Project Planning
The Ministry of Energy mandates that at least 60% of the Masela gas output be allocated for Indonesia’s domestic needs, with the remaining 40% potentially exported. Domestic use includes fertilizer manufacturing, power generation, and downstream sectors. The government has identified companies like Pupuk Indonesia, PLN, and PGN as potential beneficiaries. The approved development plan also allocates 150 million standard cubic feet of pipeline gas daily, with the domestic share integrated into the formal project 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 is valid until November 15, 2055. The Abadi field was discovered in 2000, with Indonesia approving an onshore development plan in 2019. A revised plan including carbon storage received approval in 2023. INPEX initiated front-end engineering design in 2025, aiming for a final investment decision by the end of 2027.
Engineering Progress Continues Ahead of Investment Decision
The project’s groundbreaking follows over twenty years of planning following the field’s discovery. Indonesian officials described the event as the formal beginning of physical construction. Meanwhile, INPEX continues engineering activities for the offshore vessel, subsea systems, export pipeline, and onshore processing plant. Two separate consortia are working in parallel on design for the offshore vessel and LNG facility. INPEX states this work will facilitate contractor selection before making the final investment decision. Production is targeted for the early 2030s.
A 10% participating interest has been reserved for a Maluku Province-owned company. The field is located 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 development could bolster local businesses, infrastructure, and workforce training. Studies referenced by the ministry estimate peak construction employment exceeding 12,000 jobs. Indonesia’s fiscal forecasts are provisional and subject to ongoing project preparations.