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 forecasted $6.43 billion in indirect tax income. These figures were announced after a groundbreaking ceremony held on July 16 in Maluku, marking the official commencement of physical development for the $20.9 billion national strategic project. President Prabowo Subianto participated remotely from Jakarta for the event. The government designates Abadi Masela as a key project in national energy development.
During its peak construction phase, employment is projected to exceed 12,000 workers. Indonesia intends to assign 30% of these jobs to residents of Maluku and the Tanimbar Islands. Once operational, the project could employ between 800 and 1,000 staff members. Officials estimate the project could add $137.8 billion to Indonesia’s gross domestic product, with contributions of $95 billion to Maluku and $92 billion to the Tanimbar Islands. These estimates encompass economic activity expected throughout both the development and operational stages of the project.
The Abadi gas field is located in the Arafura Sea, approximately 180 kilometers from Yamdena Island. Water depths across the offshore site range from 400 to 800 meters. The development plan includes subsea production infrastructure, an offshore processing vessel, and a pipeline extending about 175 kilometers. Additionally, it involves an onshore liquefied natural gas (LNG) plant and facilities for carbon capture and storage. The project aims to produce 9.5 million tonnes of LNG annually, with a daily condensate output of up to 35,000 barrels.
Local demand prioritizes gas supply
Indonesia mandates that at least 60% of the project’s gas production be supplied to the domestic market. The remaining 40% may be allocated for export. Domestic consumers are expected to include fertilizer producers, power plants, and downstream industrial companies. Potential buyers identified by the government include Pupuk Indonesia, PLN, and PGN. The project also plans to deliver 150 million standard cubic feet of pipeline gas daily. Indonesia’s Energy Ministry incorporated the domestic allocation into the approved development framework.
INPEX operates the project with a 65% participating interest. Pertamina owns 20%, and Petronas has the remaining 15%. The production-sharing contract is valid until November 15, 2055. INPEX discovered the Abadi field in 2000, and Indonesia approved an onshore development plan in 2019. A revised plan including carbon storage received approval in 2023. Front-end engineering work began in 2025. INPEX aims to make a final investment decision by the end of 2027, with production expected in the early 2030s.
Progress in engineering for key facilities
Engineering activities continue on the offshore vessel, subsea systems, export pipeline, and onshore LNG facilities. Two contracting groups are working simultaneously on the design of the offshore vessel and liquefaction plant. This parallel approach will help INPEX finalize technical plans and select contractors ahead of the investment decision. The July groundbreaking marked the culmination of over twenty years of field studies, regulatory reviews, and planning efforts. Officials described this event as the start of actual construction, with ongoing preparations across offshore and onshore components.
A 10% participating interest has been reserved for a company owned by Maluku Province. The field is situated more than 12 nautical miles from the nearest island. The project framework also includes oil and gas revenue-sharing arrangements for the province. Indonesia’s Energy Ministry expects local firms to participate in supply and service activities during development. Plans are also in place for workforce training and infrastructure support. These revenue, employment, and economic impact projections remain official as engineering, contracting, and construction efforts progress.