TANIMBAR ISLANDS, INDONESIA / RankWire.AI / – Indonesia anticipates the Abadi Masela LNG project to generate approximately $37.8 billion in direct government revenue. Energy and Mineral Resources Minister Bahlil Lahadalia also forecasted $6.43 billion in indirect tax income. The figures were announced following a groundbreaking ceremony on July 16 in Maluku, marking the official commencement of physical construction for the $20.9 billion national strategic project. President Prabowo Subianto participated remotely from Jakarta for the event. The government classifies Abadi Masela as a significant national energy initiative.
During its peak phase, construction is expected to create over 12,000 jobs, according to government estimates. Indonesia plans to ensure 30% of these positions go to workers from Maluku and the Tanimbar Islands. Once operational, the project could support between 800 and 1,000 employees. Officials project the development could boost Indonesia’s gross domestic product by $137.8 billion, with contributions of $95 billion to Maluku and $92 billion to the Tanimbar Islands. These projections reflect economic activity anticipated throughout the project’s construction and operational phases.
The Abadi gas field is situated in the Arafura Sea, approximately 180 kilometers from Yamdena Island. Water depths in the offshore area range from 400 to 800 meters. The development plan includes subsea production facilities, an offshore processing vessel, and a 175-kilometer pipeline. It also involves constructing an onshore liquefied natural gas plant and carbon capture and storage infrastructure. The project aims to produce 9.5 million tonnes of LNG annually, with daily condensate output reaching up to 35,000 barrels.
Majority of Gas to Serve Domestic Market
Indonesia mandates that at least 60% of the produced gas be allocated for domestic consumption. The remaining 40% may be exported, with overseas sales limited accordingly. Intended domestic consumers include fertilizer producers, power plants, and downstream industrial sectors. Potential buyers identified by the government include Pupuk Indonesia, PLN, and PGN. Additionally, the project will supply 150 million standard cubic feet of pipeline gas daily. The domestic allocation has been incorporated into the approved development framework by Indonesia’s Energy Ministry.
INPEX operates the project and holds a 65% participating interest. Pertamina owns 20%, while Petronas controls the remaining 15%. The production-sharing agreement is valid until November 15, 2055. INPEX discovered the Abadi field in 2000, and Indonesia approved an onshore development plan in 2019. In 2023, authorities approved an updated plan that includes carbon storage. Front-end engineering work started in 2025. INPEX aims to reach a final investment decision by the end of 2027, with production expected in the early 2030s.
Progress in Engineering of Key Facilities
Engineering activities continue on the offshore vessel, subsea systems, export pipeline, and onshore LNG facility. Two contractor groups are conducting parallel design processes for the offshore vessel and liquefaction plant. This approach will assist INPEX in finalizing technical plans and selecting contractors ahead of the investment decision. The July groundbreaking marked the culmination of over two decades of field studies, regulatory evaluations, and development planning. Officials described the event as the start of physical construction, with ongoing preparations across multiple offshore and onshore elements.
A 10% participating interest has been allocated to a company owned by Maluku Province. The field lies more than 12 nautical miles from the nearest island. Revenue-sharing arrangements for oil and gas are also established for the province as part of the project framework. Indonesia’s Energy Ministry expects local firms to participate in supply and service activities during development. The government’s plans also include workforce training and infrastructure development. These revenue, employment, and economic impact projections remain official estimates as engineering, contracting, and construction activities advance.