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 revenues. These figures were announced following a groundbreaking event on July 16 in Maluku. The ceremony marked the official commencement of physical development for the $20.9 billion national strategic project. President Prabowo Subianto participated remotely from Jakarta. The government designates Abadi Masela as a key national energy project.
During its peak construction phase, the project could employ over 12,000 workers, according to government estimates. Indonesia aims to allocate 30% of these jobs to residents of Maluku and the Tanimbar Islands. Once operational, the facility is expected to support between 800 and 1,000 employees. Officials project that the project could contribute $137.8 billion to Indonesia’s gross domestic product, with an additional $95 billion benefiting Maluku and $92 billion supporting the Tanimbar Islands. These projections encompass economic activity throughout 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. Development plans include subsea production infrastructure, an offshore processing vessel, and a pipeline about 175 kilometers long. Onshore facilities are also planned, including a liquefied natural gas plant and carbon capture and storage units. The project aims to produce 9.5 million tonnes of LNG annually, with daily condensate output of up to 35,000 barrels.
Majority of gas allocated for domestic use
Indonesia mandates that at least 60% of the gas produced be supplied to the local market. The remaining 40% may be exported. Domestic consumers will include fertilizer producers, power plants, and downstream industrial companies. 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 Indonesian Energy Ministry incorporated this domestic allocation into the approved development plan.
INPEX operates the project with a 65% stake. Pertamina holds 20%, while 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 that included carbon storage was approved in 2023. Front-end engineering activities started in 2025, with a final investment decision targeted for the end of 2027 and production expected in the early 2030s.
Progress in engineering for primary facilities
Engineering teams are advancing work on the offshore vessel, subsea systems, export pipeline, and onshore LNG plant. Two contractor groups are conducting parallel designs for the offshore vessel and liquefaction facilities. This process will help INPEX finalize technical plans and select contractors ahead of the investment decision. The July groundbreaking marked the culmination of over two decades of field studies, regulatory assessments, and development planning. Officials described this event as the start of physical construction, with ongoing preparation across offshore and onshore components.
The government has allocated a 10% participating interest for a company owned by Maluku Province. The field is situated more than 12 nautical miles from the closest island. Revenue-sharing arrangements for oil and gas also include funds allocated to the province. Indonesia’s Energy Ministry expects local companies to participate in supply and service activities during development. The government’s plans also include workforce training and infrastructure support. These revenue, employment, and economic impact projections remain in place as engineering, contracting, and construction efforts continue.