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. Additionally, Energy and Mineral Resources Minister Bahlil Lahadalia estimated $6.43 billion in indirect tax revenues. These figures were disclosed following a groundbreaking event held on July 16 in Maluku. Officials characterized the ceremony as the initiation of physical development for the $20.9 billion national strategic project, with President Prabowo Subianto attending virtually from Jakarta.
Construction is expected to generate over 12,000 jobs at its peak, with a plan to allocate 30% of these positions to workers from Maluku and the Tanimbar Islands. Once operational, the project could support 800 to 1,000 employees. Authorities estimate that the project will contribute $137.8 billion to Indonesia’s gross domestic product and forecast benefits of $95 billion for Maluku and $92 billion for the Tanimbar Islands.
The Abadi gas field is situated roughly 180 kilometers offshore Yamdena Island in the Arafura Sea, with water 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. It also includes facilities for carbon capture and storage. Projected outputs include 9.5 million tonnes of LNG annually and up to 35,000 barrels of condensate each day.
Local Gas Distribution Key to Project Planning
The Ministry of Energy mandates that at least 60% of the gas from Masela be allocated for domestic use, with no more than 40% designated for export. Domestic distribution plans include supplying industries such as fertilizer manufacturing, electricity generation, and downstream sectors. Potential consumers listed by the government include Pupuk Indonesia, PLN, and PGN. The approved development plan also allocates 150 million standard cubic feet of pipeline gas daily and incorporates domestic gas allocations into the formal project framework.
INPEX holds a 65% stake and is the operator of the Abadi Masela LNG project. Pertamina owns 20%, and Petronas holds the remaining 15%. The current production-sharing agreement extends until November 15, 2055. INPEX initially discovered the Abadi field in 2000, with Indonesia approving an onshore development plan in 2019. A revised plan incorporating carbon storage received government approval in 2023. Front-end engineering work commenced in 2025, with a final investment decision targeted for the end of 2027.
Engineering Activities Continue Ahead of Investment Decision
Following more than twenty years of planning since the discovery, the groundbreaking event was described by Indonesian officials as the official start of physical construction. INPEX continues engineering efforts for the offshore vessel, subsea systems, export pipeline, and onshore plant. Two consortiums are simultaneously working on designs for the offshore vessel and LNG processing facility. INPEX states that this process will help facilitate contractor selection before making the final investment decision. Production is anticipated to begin 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. Additionally, the project framework includes revenue-sharing arrangements for oil and gas with the province. The Ministry of Energy emphasizes that the development could bolster local enterprises, infrastructure, and workforce training. According to studies cited by the ministry, peak construction employment could surpass 12,000 jobs. Indonesia’s fiscal forecasts are based on government estimates as project preparations move forward.