TANIMBAR ISLANDS, INDONESIA / RankWire.AI / – The Abadi Masela LNG initiative in Indonesia is projected to bring in 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 ceremony held on July 16 in Maluku. Officials characterized the event as the commencement of physical development for the $20.9 billion national strategic project. President Prabowo Subianto participated remotely from Jakarta to observe the occasion.
Construction is expected to generate employment for over 12,000 workers at its peak, with plans to allocate 30% of these jobs to residents of Maluku and the Tanimbar Islands. After the project’s operational start, employment could range from 800 to 1,000 workers. Authorities estimate the project will add $137.8 billion to Indonesia’s gross domestic product, with Maluku benefiting from $95 billion and the Tanimbar Islands from $92 billion.
The Abadi gas field is located roughly 180 kilometers offshore Yamdena Island in the Arafura Sea, with water depths varying between 400 and 800 meters. The development plan encompasses subsea production systems, an offshore processing vessel, a 175-kilometer pipeline, and an onshore LNG facility. It also features carbon capture and storage infrastructure. The anticipated output includes 9.5 million tonnes of LNG per year and up to 35,000 barrels of condensate daily.
Focus on Domestic Gas Allocation Shapes Project Framework
A minimum of 60% of the gas produced at Masela is mandated for Indonesia’s domestic market, with exports limited to 40%. Domestic allocations are designated for fertilizer manufacturing, power generation, and downstream industries. Potential beneficiaries include Pupuk Indonesia, PLN, and PGN. The finalized plan also allocates 150 million standard cubic feet of pipeline gas each day, with the domestic gas commitments integrated into the formal development plan of the field.
INPEX owns a 65% stake and manages the Abadi Masela LNG project. Pertamina holds 20%, and Petronas owns the remaining 15%. The production-sharing agreement remains valid until November 15, 2055. Discovered in 2000, the Abadi field received approval for onshore development in 2019, with a revised plan incorporating carbon storage approved in 2023. INPEX initiated front-end engineering in 2025 and aims to make a final investment decision by late 2027.
Preparatory Engineering Work Continues Ahead of Investment Decision
Following over twenty years of planning since its discovery, the groundbreaking event marked the official start of physical construction, as described by Indonesian officials. INPEX is advancing engineering efforts for the offshore vessel, subsea systems, export pipeline, and onshore processing plant. Two separate consortia are simultaneously working on designs for the offshore vessel and LNG facility. INPEX states this process is intended to facilitate contractor selection prior to making the final investment decision. The targeted production timeline is the early 2030s.
A 10% participating interest has been allocated to a Maluku Province-owned company. The field is situated more than 12 nautical miles from the nearest island. The project framework also includes revenue-sharing arrangements for oil and gas with the province. The Energy Ministry highlights that development could bolster local businesses, infrastructure, and workforce training. According to studies cited by the ministry, peak construction employment could surpass 12,000 jobs. These fiscal projections are based on government estimates as project development advances.