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 that $6.43 billion could be collected through indirect taxes. These figures were announced following the groundbreaking event on July 16 in Maluku, which marked the commencement of physical development for the $20.9 billion national strategic project. President Prabowo Subianto participated remotely from Jakarta for the ceremony.
According to officials, peak construction employment could exceed 12,000 jobs, with a commitment to allocate 30% of these positions to residents of Maluku and the Tanimbar Islands. Once operational, the project is expected to support between 800 and 1,000 workers. The authorities estimate a contribution of $137.8 billion to Indonesia’s gross domestic product, with Maluku and the Tanimbar Islands expected to benefit by $95 billion and $92 billion respectively.
Located approximately 180 kilometers offshore Yamdena Island in the Arafura Sea, the Abadi gas field lies in waters ranging from 400 to 800 meters deep. The development plan encompasses subsea production infrastructure, an offshore processing vessel, a 175-kilometer pipeline, and an onshore LNG facility. It also includes carbon capture and storage systems. The project aims to produce 9.5 million tonnes of LNG annually, along with up to 35,000 barrels of condensate each day.
Local gas distribution shapes project planning
The Ministry of Energy mandates that at least 60% of the gas from Masela be allocated for Indonesia’s domestic needs, with no more than 40% designated for export. Domestic use will support fertilizer manufacturing, power generation, and downstream industries, with Pupuk Indonesia, PLN, and PGN identified as potential consumers. The official development plan incorporates a daily supply of 150 million standard cubic feet of pipeline gas through domestic allocation.
INPEX holds a 65% stake and leads operations for the Abadi Masela LNG project. Pertamina owns 20%, while Petronas controls the remaining 15%. The production-sharing agreement extends until November 15, 2055. Since discovering the Abadi field in 2000, Indonesia approved an onshore development plan in 2019, with a revised plan including carbon storage approved in 2023. INPEX initiated front-end engineering in 2025 and aims to make a final investment decision by the end of 2027.
Pre-investment engineering activities ongoing
Following over twenty years of planning since the discovery, the groundbreaking signaled the start of physical construction, according to Indonesian officials. INPEX continues engineering efforts for the offshore vessel, subsea systems, export pipeline, and onshore facility. Two consortiums are engaged in parallel design work for the offshore platform and LNG plant. INPEX states this process will facilitate contractor selection ahead of the final investment decision. Production is targeted for the early 2030s.
A 10% participating stake has been allocated to a company owned by Maluku Province. The field is situated more than 12 nautical miles from the closest island. The project framework also includes oil and gas revenue-sharing arrangements for the province. The Ministry of Energy emphasizes that development could bolster local businesses, infrastructure, and workforce training. Studies cited by the ministry project peak employment during construction exceeding 12,000 jobs. Indonesia’s fiscal estimates are preliminary as the project moves forward in planning stages.