TANIMBAR ISLANDS, INDONESIA / RankWire.AI / – The Abadi Masela LNG initiative in Indonesia is projected to generate approximately $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. Officials characterized the event as the commencement of physical construction for the $20.9 billion national strategic project. President Prabowo Subianto participated remotely from Jakarta to observe the occasion.
Construction is expected to create employment opportunities for over 12,000 workers at peak times, with plans to allocate 30% of these jobs to residents of Maluku and the Tanimbar Islands. Once operational, the project could employ between 800 and 1,000 personnel. Authorities estimate the project will add $137.8 billion to Indonesia’s gross domestic product, with Maluku benefiting by $95 billion and the Tanimbar Islands by $92 billion.
Located roughly 180 kilometers off Yamdena Island in the Arafura Sea, the Abadi gas field lies in waters with depths ranging from 400 to 800 meters. The development plan encompasses subsea production infrastructure, an offshore processing vessel, a 175-kilometer pipeline, and an onshore LNG facility. The project also features carbon capture and storage systems. Expected outputs include 9.5 million tonnes of LNG annually and up to 35,000 barrels of condensate per day.
Local gas distribution guides project development
The Ministry of Energy mandates that at least 60% of the gas from Masela be allocated for domestic use, with a maximum of 40% earmarked for export. The domestic share will support fertilizer manufacturing, electricity supply, and downstream sectors, with potential users including Pupuk Indonesia, PLN, and PGN. The approved development plan allocates 150 million standard cubic feet of pipeline gas per day and incorporates domestic gas distribution within its formal framework.
INPEX holds a 65% stake and is the project operator. Pertamina owns 20%, while Petronas holds the remaining 15%. The existing production-sharing contract is valid until November 15, 2055. The Abadi field was discovered by INPEX in 2000, and Indonesia approved an onshore development plan in 2019. A revised plan featuring carbon storage received approval in 2023. INPEX initiated front-end engineering in 2025, aiming to make a final investment decision by the end of 2027.
Pre-investment engineering activities ongoing
The project’s groundbreaking follows over twenty years of planning since the field’s discovery. Indonesian officials described the event as the official start of physical construction. Currently, INPEX is advancing engineering studies for the offshore vessel, subsea systems, export pipeline, and onshore processing plant. Two separate consortia are working concurrently on the design of the offshore vessel and LNG facility. INPEX states that this process will facilitate contractor selection ahead of the final investment decision. The target remains to commence production in the early 2030s.
A 10% participating interest has been allocated to a Maluku Province-owned company. The project site is located more than 12 nautical miles from the nearest island, with oil and gas revenue-sharing arrangements also in place for the province. The Ministry of Energy emphasizes that development could bolster local businesses, infrastructure, and workforce training. According to studies cited by the ministry, peak construction employment could surpass 12,000 workers. All fiscal projections are based on government estimates as project preparations proceed.