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 July 16 groundbreaking event in Maluku, marking the official commencement of physical development for the $20.9 billion national strategic initiative. President Prabowo Subianto participated remotely from Jakarta during the ceremony. The government designates Abadi Masela as a key national energy project.
During its peak construction phase, the project could create employment opportunities for over 12,000 individuals, according to government estimates. Indonesia intends to allocate 30% of these jobs to residents of Maluku and the Tanimbar Islands. Once operational, the project is expected to support between 800 and 1,000 workers. Authorities project the project’s contribution to Indonesia’s gross domestic product at $137.8 billion, with Maluku potentially gaining $95 billion and the Tanimbar Islands $92 billion. These projections cover the economic activity anticipated throughout the development and operational stages of the project.
The Abadi gas field is situated in the Arafura Sea, roughly 180 kilometers from Yamdena Island. Seabed depths in this offshore area vary from 400 to 800 meters. The development plan includes subsea production equipment, an offshore processing vessel, and a pipeline extending approximately 175 kilometers. Additionally, plans encompass onshore liquefied natural gas facilities and carbon capture and storage infrastructure. The project aims for an annual LNG output of 9.5 million tonnes, with daily production of up to 35,000 barrels of condensate.
Meeting Domestic Gas Demand Takes Priority
Indonesia mandates that at least 60% of the project’s gas supply be directed toward the domestic market. The remaining 40% may be exported, with overseas sales capped at that percentage. Domestic consumers are expected to include fertilizer producers, power plants, and downstream manufacturing firms. Potential buyers identified by the government include 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 operates the project, holding a 65% stake, while Pertamina owns 20%, and Petronas controls the remaining 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 approval in 2023. Front-end engineering activities commenced in 2025. INPEX aims to make a final investment decision by the end of 2027, with production expected in the early 2030s.
Progress in Engineering of Key Facilities
Engineering efforts continue on the offshore vessel, subsea systems, export pipeline, and onshore LNG facility. Two contracting groups are executing parallel design processes for the offshore vessel and liquefaction plant. This approach allows INPEX to finalize technical plans and select contractors ahead of the investment decision. The July groundbreaking followed more than two decades of field assessments, regulatory reviews, and development planning. Officials described the event as the start of physical construction, with ongoing project preparations across offshore and onshore components.
A 10% participating interest has been reserved for a company owned by Maluku Province. The field is located over 12 nautical miles from the nearest island. The project framework also includes provisions for oil and gas revenue-sharing funds for the province. Indonesia’s Energy Ministry expects local firms to participate in supply and service activities during development. The government also plans to invest in workforce training and infrastructure development. These figures for revenue, employment, and economic impact remain official projections as engineering, contracting, and construction progress.