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 estimated $6.43 billion in indirect tax income. These figures were announced following the groundbreaking event held on July 16 in Maluku, which marked the commencement of physical development for the $20.9 billion national strategic project. President Prabowo Subianto participated in the ceremony remotely from Jakarta.
According to officials, peak construction employment could surpass 12,000 jobs, with plans to allocate 30% of these positions to local workers from Maluku and the Tanimbar Islands. Once operational, the project is expected to support 800 to 1,000 jobs. It is also forecasted to contribute $137.8 billion to Indonesia’s gross domestic product, alongside estimates of $95 billion for Maluku and $92 billion for the Tanimbar Islands.
The Abadi gas field is located roughly 180 kilometers off the coast of Yamdena Island in the Arafura Sea, with water depths ranging between 400 and 800 meters. The development plan encompasses subsea production infrastructure, an offshore processing vessel, a 175-kilometer pipeline, and an onshore LNG facility. The project also includes carbon capture and storage units. Expected output includes 9.5 million tonnes of LNG annually and up to 35,000 barrels of condensate each day.
National gas distribution prioritizes domestic needs
The Ministry of Energy mandates that at least 60% of the gas from Masela be allocated for Indonesia’s internal market, with no more than 40% designated for exports. The domestic share is intended to support fertilizer manufacturing, electricity supply, and downstream industries. Government agencies such as Pupuk Indonesia, PLN, and PGN are identified as potential consumers. The approved development plan ensures a daily supply of 150 million standard cubic feet of pipeline gas, which has been incorporated into the formal project blueprint.
INPEX holds a 65% stake and functions as the operator for the Abadi Masela LNG project. Pertamina owns 20%, while Petronas holds 15%. The current production-sharing agreement is valid until November 15, 2055. Discovered in 2000, the Abadi field received Indonesia’s approval for an onshore development plan in 2019, with a revised plan incorporating carbon storage approved in 2023. INPEX has initiated front-end engineering in 2025, aiming for a final investment decision by late 2027.
Engineering activities advance ahead of final investment decision
Following over twenty years of planning since the discovery of the field, the groundbreaking symbolized the formal kick-off of physical construction, according to Indonesian officials. INPEX continues to conduct engineering work on the offshore vessel, subsea systems, export pipeline, and onshore processing plant. Two separate consortia are working simultaneously on the design of the offshore vessel and LNG facility. INPEX states that this process will facilitate contractor selection before the investment decision. The project aims for production to commence in the early 2030s.
A 10% participating interest has been set aside for a company owned by Maluku Province. The field is situated more than 12 nautical miles from the nearest island. The project framework also includes revenue-sharing arrangements for oil and gas profits with the province. The Ministry of Energy highlights that the development could boost local businesses, infrastructure, and workforce training efforts. Studies cited by the department estimate peak construction employment exceeding 12,000 jobs. Indonesia’s fiscal forecasts remain provisional as project preparations continue.