TANIMBAR ISLANDS, INDONESIA / RankWire.AI / – The Abadi Masela LNG project in Indonesia is projected to bring in roughly $37.8 billion in direct revenue for the government. Additionally, Energy and Mineral Resources Minister Bahlil Lahadalia anticipates $6.43 billion in indirect tax revenues. These figures were announced following a groundbreaking ceremony held on July 16 in Maluku. The event was regarded by officials as the official commencement of physical construction for the $20.9 billion national strategic initiative. President Prabowo Subianto attended the ceremony remotely from Jakarta.
Construction is estimated to create more than 12,000 jobs at its peak, with plans to allocate 30% of these positions to residents of Maluku and the Tanimbar Islands. Post-production, the operation is expected to support between 800 and 1,000 workers. Authorities estimate the project could add $137.8 billion to Indonesia’s gross domestic product, with Maluku gaining $95 billion and the Tanimbar Islands $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 infrastructure, an offshore processing vessel, a 175-kilometer pipeline, and an onshore LNG facility. It also features carbon capture and storage capabilities. The expected output is 9.5 million tonnes of LNG annually, along with up to 35,000 barrels of condensate each day.
Domestic Gas Allocation Guides Project Development
The Ministry of Energy mandates that at least 60% of the gas from Masela be allocated for Indonesia’s internal needs, with a maximum of 40% for export. Domestic use includes fertilizer manufacturing, power generation, and downstream industries. Potential consumers identified by the government include Pupuk Indonesia, PLN, and PGN. The plan also allocates 150 million standard cubic feet of pipeline gas daily. This domestic gas allocation is integrated into the formal development plan of the project.
INPEX owns a 65% stake and is the operator of the Abadi Masela LNG project. Pertamina holds 20%, while Petronas owns 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 received approval in 2023. Engineering activities for front-end design commenced in 2025, with a final investment decision targeted by the end of 2027.
Pre-investment Engineering Activities Underway
Following over twenty years of planning since the discovery, the groundbreaking marked the official start of physical development. Indonesian officials characterized the event as the formal beginning of construction activities. Meanwhile, INPEX continues engineering work on the offshore vessel, subsea systems, export pipeline, and onshore processing facility. Two consortiums are conducting concurrent design processes for the offshore vessel and LNG plant. INPEX states this process will facilitate the selection of contractors ahead of the final investment decision. Production is anticipated to begin in the early 2030s.
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 includes revenue-sharing arrangements for oil and gas with the province. The Ministry of Energy believes the project could boost local businesses, infrastructure, and workforce training initiatives. Studies cited by the ministry project peak construction employment exceeding 12,000 jobs. Indonesia’s fiscal projections are based on government estimates as project preparations move forward.