TANIMBAR ISLANDS, INDONESIA / RankWire.AI / – Indonesia anticipates the Abadi Masela LNG project to 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 income. These figures were announced following a groundbreaking event on July 16 in Maluku, marking the official commencement of construction activities for the $20.9 billion national strategic project. President Prabowo Subianto participated virtually from Jakarta. The government considers Abadi Masela a key national energy project.
During its peak construction phase, the project could create employment opportunities for over 12,000 individuals, according to government estimates. Indonesia plans to ensure that 30% of these jobs are filled by workers from Maluku and the Tanimbar Islands. Once operational, the project is expected to support between 800 and 1,000 workers. Officials project that the development could boost Indonesia’s gross domestic product by $137.8 billion, with contributions of $95 billion to Maluku and $92 billion to the Tanimbar Islands. These projections encompass the economic activity expected throughout both the development and operational phases of the project.
The Abadi gas field is located in the Arafura Sea, approximately 180 kilometers from Yamdena Island. Offshore water depths range from 400 to 800 meters. The development plan includes subsea production facilities, an offshore processing vessel, and a pipeline extending roughly 175 kilometers. Additionally, onshore facilities are planned, including a liquefied natural gas plant and carbon capture and storage systems. The project aims to produce 9.5 million tonnes of LNG annually, with a daily condensate output of up to 35,000 barrels.
Majority of Gas to Meet Domestic Demand
Indonesia mandates that at least 60% of the gas from the project be supplied to the domestic market. The remaining 40% may be exported, with foreign sales capped at that level. Domestic consumers are expected to include fertilizer manufacturers, power plants, and downstream industrial companies. Potential buyers identified by the government include Pupuk Indonesia, PLN, and PGN. The project will also provide 150 million standard cubic feet of pipeline gas daily. The Indonesian Energy Ministry incorporated this domestic allocation into the approved development framework.
INPEX operates the project with a 65% stake. Pertamina holds 20%, while Petronas owns 15%. The production-sharing agreement is valid until November 15, 2055. The Abadi field was discovered by INPEX 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 started in 2025, with the company aiming for a final investment decision by the end of 2027 and production beginning in the early 2030s.
Progress in Engineering for Key Infrastructure
Design activities continue on the offshore vessel, subsea systems, export pipeline, and onshore LNG facility. Two contractor teams are conducting parallel design work for the offshore vessel and liquefaction plant. This process will facilitate INPEX in finalizing technical plans and selecting contractors ahead of the investment decision. The July groundbreaking marked the start of physical construction after more than twenty years of field studies, regulatory reviews, and development planning. Engineering efforts persist across multiple offshore and onshore components.
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 provisions for oil and gas revenue-sharing with the province. Indonesia’s Energy Ministry expects local companies to participate in supply and service activities during development. Additional government initiatives focus on workforce training and infrastructure development. These revenue, employment, and economic impact estimates remain projections as engineering, contracting, and construction activities advance.