TANIMBAR ISLANDS, INDONESIA / RankWire.AI / – The Abadi Masela LNG project in Indonesia is projected to bring in approximately $37.8 billion in direct revenue for the government. Additionally, Energy and Mineral Resources Minister Bahlil Lahadalia has estimated $6.43 billion in indirect tax income. These figures were announced following a groundbreaking event on July 16 in Maluku, which officials described as the commencement of physical development for the $20.9 billion national strategic initiative. President Prabowo Subianto attended the event virtually from Jakarta.
Construction is expected to create over 12,000 jobs at its peak, with a plan to allocate 30% of these positions to workers from Maluku and the Tanimbar Islands. Once operational, the project could employ between 800 and 1,000 individuals. Officials estimate the project will contribute $137.8 billion to Indonesia’s gross domestic product, with projected benefits of $95 billion for Maluku and $92 billion for the Tanimbar Islands.
The Abadi gas field is situated roughly 180 kilometers offshore Yamdena Island in the Arafura Sea, with water depths ranging from 400 to 800 meters. The development encompasses subsea production systems, an offshore processing vessel, a 175-kilometer pipeline, and an onshore LNG facility. It also plans for carbon capture and storage infrastructure. Expected output includes 9.5 million tonnes of LNG each year and as much as 35,000 barrels of condensate daily.
Local gas allocation drives project planning
The Ministry of Energy mandates that at least 60% of the gas produced from Masela be allocated for domestic use, with no more than 40% exported. The domestic share will support fertilizer manufacturing, electricity generation, and downstream industries. Pupuk Indonesia, PLN, and PGN are among the entities identified as potential consumers. The approved plan also includes a daily supply of 150 million standard cubic feet of pipeline gas, which has been incorporated into the formal development plan for the field.
INPEX holds a 65% stake and is the operator of the Abadi Masela LNG project. Pertamina owns 20%, and Petronas has 15%. The 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 including carbon storage received government approval in 2023. INPEX initiated front-end engineering in 2025 and aims to reach a final investment decision by late 2027.
Pre-investment engineering activities ongoing
Following over twenty years of planning since the field’s discovery, the groundbreaking marked the official start of physical construction, according to Indonesian officials. INPEX continues engineering efforts for the offshore vessel, subsea systems, export pipeline, and onshore plant. Two separate consortia are working simultaneously on the design of the offshore vessel and LNG facility. INPEX states this phase will facilitate contractor selection ahead of the final investment decision. Production is targeted for the early 2030s.
A 10% participating interest has been allocated to 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 mechanisms for oil and gas with the province. The Ministry of Energy indicates that development could stimulate local businesses, infrastructure, and workforce training. According to studies cited by the ministry, peak construction employment could surpass 12,000 jobs. Indonesia’s fiscal forecasts are based on government estimates as project preparations move forward.