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 estimated $6.43 billion in indirect tax revenue. The figures were announced following a groundbreaking ceremony held on July 16 in Maluku. This event marked the official commencement of physical construction for the $20.9 billion national strategic project. President Prabowo Subianto participated remotely from Jakarta. The government classifies Abadi Masela as a major initiative in national energy development.
During its peak activity, construction is projected to employ over 12,000 workers. Indonesia plans to allocate 30% of these jobs to residents of Maluku and the Tanimbar Islands. Once operational, the facility could support between 800 and 1,000 employees. Officials estimate the project’s contribution to Indonesia’s gross domestic product at $137.8 billion, with expected benefits of $95 billion for Maluku and $92 billion for the Tanimbar Islands. These figures encompass the economic impact throughout the development and operational phases of the project.
Located in the Arafura Sea, the Abadi gas field is approximately 180 kilometers from Yamdena Island. Water depths in the offshore area range from 400 to 800 meters. Development plans include subsea production systems, an offshore processing vessel, and a pipeline roughly 175 kilometers long. The project also features an onshore liquefied natural gas (LNG) plant and facilities for carbon capture and storage. The target annual production is 9.5 million tonnes of LNG, with daily condensate output expected to reach up to 35,000 barrels.
Majority of gas allocated for domestic use
Indonesia mandates that at least 60% of the project’s gas production be supplied to the domestic market. The remaining 40% may be exported, with overseas sales capped at this percentage. Domestic consumers are expected to include fertilizer producers, power plants, and downstream industries. Potential buyers identified by the government include Pupuk Indonesia, PLN, and PGN. The project will also deliver 150 million standard cubic feet of pipeline gas daily. The domestic allocation was incorporated into the approved development framework by Indonesia’s Energy Ministry.
INPEX serves as the operator with a 65% stake. Pertamina owns 20%, while Petronas holds the remaining 15%. The production-sharing agreement extends until November 15, 2055. INPEX discovered the Abadi field in 2000, with Indonesia approving an onshore development plan in 2019. A revised plan that includes carbon storage was approved in 2023, and front-end engineering activities began in 2025. The company aims to make a final investment decision by the end of 2027, with production expected to start in the early 2030s.
Progress in engineering for core infrastructure
Work continues on the offshore vessel, subsea systems, export pipeline, and onshore LNG facility. Two contractor teams are conducting parallel design processes for the vessel and liquefaction plant, aiding INPEX in finalizing technical plans and selecting contractors ahead of the investment decision. The July groundbreaking event followed more than twenty years of field studies, regulatory reviews, and development planning. Officials described the ceremony as the start of actual construction, with ongoing preparation across several 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 allocates oil and gas revenue-sharing funds to the province. Indonesia’s Energy Ministry expects local companies to take part in supply and service activities during development. The government’s plans also include workforce training and infrastructure support. All revenue, employment, and economic impact projections remain official estimates as engineering, contracting, and construction efforts proceed.