TANIMBAR ISLANDS, INDONESIA / RankWire.AI / – The Abadi Masela LNG initiative in Indonesia is projected to bring about $37.8 billion in direct revenue to the government. Additionally, Energy and Mineral Resources Minister Bahlil Lahadalia estimates $6.43 billion in indirect tax earnings. These figures were announced following a groundbreaking ceremony held on July 16 in Maluku. The event signified the commencement of physical construction for the $20.9 billion national strategic project, with President Prabowo Subianto participating remotely from Jakarta.
Officials indicate that peak construction could create over 12,000 jobs, with 30% of these positions allocated for workers from Maluku and the Tanimbar Islands. Once operational, the project is expected to support between 800 and 1,000 employees. The government forecasts a contribution of $137.8 billion to Indonesia’s gross domestic product, along with estimated gains of $95 billion for Maluku and $92 billion for the Tanimbar Islands.
The Abadi gas field is situated approximately 180 kilometers offshore Yamdena Island in the Arafura Sea, with water depths ranging from 400 to 800 meters. The development plan involves subsea production systems, an offshore processing vessel, a 175-kilometer pipeline, and an onshore LNG plant. The project also includes facilities for carbon capture and storage. Expected outputs are 9.5 million tonnes of LNG annually and up to 35,000 barrels of condensate each day.
Focus on Domestic Gas Distribution Shapes Project Timeline
The Ministry of Energy mandates that at least 60% of the gas produced from Masela be allocated for Indonesia’s domestic consumption, with the remaining 40% available for export. Domestic uses include fertilizer manufacturing, power generation, and downstream industries. Potential users identified by the government include Pupuk Indonesia, PLN, and PGN. The approved development plan also allocates 150 million standard cubic feet of pipeline gas daily, which has been incorporated into the formal field development plan.
INPEX holds a 65% stake and is the operator of the Abadi Masela LNG project. Pertamina owns 20%, while Petronas holds the remaining 15%. The production-sharing agreement is valid until November 15, 2055. Discovered in 2000, the Abadi field received Indonesia’s approval for onshore development in 2019, with a revised plan incorporating carbon storage approved in 2023. INPEX initiated front-end engineering design in 2025 and aims to reach a final investment decision by late 2027.
Preliminary Engineering Progress Before Final Investment Choice
Following over twenty years of planning since the field’s discovery, the groundbreaking event marked the official beginning of physical construction, according to Indonesian officials. INPEX continues to advance engineering designs for the offshore vessel, subsea equipment, export pipeline, and onshore facility. Two consortiums are working concurrently on design plans for the offshore vessel and LNG plant. INPEX states this process will facilitate contractor selection ahead of the final investment decision. Production is targeted to start in the early 2030s.
A 10% participating interest has been allocated to a company owned by Maluku Province. The field is located more than 12 nautical miles from the nearest island. The project framework also includes revenue-sharing mechanisms for oil and gas with the province. The Ministry of Energy suggests that the development could bolster local businesses, infrastructure, and workforce training programs. Studies referenced by the ministry estimate peak construction employment exceeding 12,000 jobs. Indonesia’s fiscal projections remain as government estimates as project preparations move forward.