TANIMBAR ISLANDS, INDONESIA / RankWire.AI / – Indonesia anticipates that the Abadi Masela LNG project will generate approximately $37.8 billion in direct revenue for the government. Energy and Mineral Resources Minister Bahlil Lahadalia also estimated $6.43 billion in indirect tax income. These figures were announced following a groundbreaking event on July 16 in Maluku, which marked the official commencement of physical construction for the $20.9 billion national strategic initiative. President Prabowo Subianto participated remotely from Jakarta for the ceremony. The government considers Abadi Masela a key national energy infrastructure project.
During its peak construction phase, the project could create employment opportunities for over 12,000 individuals, according to government estimates. Indonesia plans to ensure that 30% of these jobs go to residents of Maluku and the Tanimbar Islands. Once operational, the project could support between 800 and 1,000 workers. Officials project the initiative could contribute $137.8 billion to Indonesia’s gross domestic product, with additional benefits of $95 billion for Maluku and $92 billion for the Tanimbar Islands. These projections encompass economic activity throughout both the development and operational stages.
The Abadi gas field is located in the Arafura Sea, approximately 180 kilometers from Yamdena Island, with water depths ranging from 400 to 800 meters. Its development involves subsea production facilities, an offshore processing vessel, and a pipeline roughly 175 kilometers long. The plans also include an onshore LNG plant and carbon capture and storage infrastructure. The project aims to produce 9.5 million tonnes of LNG annually, with daily condensate output reaching up to 35,000 barrels.
Focus on Domestic Gas Supply
Indonesia mandates that at least 60% of the gas produced from the project be supplied to the domestic market. The remaining share may be exported, with a cap of 40% for overseas sales. Domestic consumers are expected to include fertilizer producers, power plants, and downstream industrial firms. The government has identified potential buyers such as Pupuk Indonesia, PLN, and PGN. The project will also deliver 150 million standard cubic feet of pipeline gas daily. The domestic allocation was incorporated into the approved development framework by Indonesia’s Energy Ministry.
INPEX is the operator of the project, holding a 65% stake. Pertamina owns 20%, while Petronas controls the remaining 15%. The production-sharing agreement extends until November 15, 2055. INPEX identified the Abadi field in 2000, and Indonesia approved an onshore development plan in 2019. A revised plan, including carbon storage, received approval in 2023. Front-end engineering activities started in 2025, with a final investment decision targeted for the end of 2027 and first production expected in the early 2030s.
Progress in Engineering for Key Facilities
Engineering teams are actively progressing on the offshore vessel, subsea systems, export pipeline, and onshore LNG facility. Two contracting groups are simultaneously conducting design work for the offshore vessel and liquefaction plant. This parallel process aims to finalize technical plans and select contractors ahead of the investment decision. The July groundbreaking ceremony marked the culmination of over twenty years of field studies, regulatory assessments, and development planning. Officials described the event as the start of actual construction, with ongoing preparation 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. Additionally, the project framework includes provisions for revenue sharing from oil and gas production for the province. Indonesia’s Energy Ministry expects local firms to participate in supply and service activities during development. The government’s plans also encompass workforce training and infrastructure support. These projections for revenue, employment, and economic impact are based on current estimates as work progresses on engineering, contracting, and construction phases.