TANIMBAR ISLANDS, INDONESIA / RankWire.AI / – The Indonesian government anticipates that the Abadi Masela LNG project will generate approximately $37.8 billion in direct revenue for the state. Energy and Mineral Resources Minister Bahlil Lahadalia also estimated $6.43 billion in indirect tax income. The figures were announced following a groundbreaking event on July 16 in Maluku, which officially marked the start of physical construction for the $20.9 billion strategic national project. President Prabowo Subianto participated in the ceremony remotely from Jakarta. The government designates Abadi Masela as a key national energy project.
During its peak construction phase, the project is projected to create employment for over 12,000 individuals. Indonesia plans to ensure that 30% of these jobs are filled by workers from Maluku and the Tanimbar Islands. Once operational, the project could support between 800 and 1,000 employees. Officials estimate that the initiative may contribute $137.8 billion to Indonesia’s gross domestic product, with additional contributions of $95 billion to Maluku and $92 billion to the Tanimbar Islands. These estimates account for economic activity throughout both development and operational periods.
Located in the Arafura Sea, the Abadi gas field is approximately 180 kilometers from Yamdena Island. Water depths across the offshore site range from 400 to 800 meters. The development plan involves subsea production facilities, an offshore processing vessel, and a pipeline spanning about 175 kilometers. The project also includes an onshore LNG plant and carbon capture and storage infrastructure. It aims to produce 9.5 million tonnes of LNG annually, with a daily condensate output of up to 35,000 barrels.
Meeting Domestic Gas Demands
Indonesia mandates that at least 60% of the gas produced is supplied to its domestic market. The remaining portion may be exported, with a cap of 40% on overseas sales. Planned local consumers include fertilizer producers, power plants, and downstream industrial companies. Entities such as Pupuk Indonesia, PLN, and PGN have been identified by the government as potential buyers. The project will also deliver 150 million standard cubic feet of pipeline gas daily. The Indonesian Energy Ministry incorporated the domestic allocation into the approved development framework.
INPEX operates the project with a 65% participating interest. Pertamina holds 20%, while Petronas controls the remaining 15%. The production-sharing agreement is valid until November 15, 2055. INPEX initially discovered the Abadi field in 2000, and Indonesia approved an onshore development plan in 2019. A revised plan including carbon storage was approved in 2023. Front-end engineering work commenced in 2025. The company aims to make a final investment decision by the end of 2027, with production expected in the early 2030s.
Progress in Core Engineering Projects
Engineering teams are actively working on the offshore vessel, subsea systems, export pipeline, and onshore LNG facility. Two contractor groups are conducting parallel design studies for the offshore vessel and liquefaction plant. This process will facilitate technical planning and contractor selection ahead of the final investment decision. The July groundbreaking ceremony marked the culmination of over twenty years of field studies, regulatory assessments, and development planning. Officials described it as the official start of physical 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 situated more than 12 nautical miles from the nearest island. The project framework also allocates oil and gas revenue-sharing funds for the local government. Indonesia’s Energy Ministry expects local companies to participate in supply and service activities during development. Additionally, the government’s plans include workforce training and infrastructure development. The figures for revenue, employment, and economic impact remain projections as engineering, contracting, and construction efforts advance.