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 income. The figures were announced following a groundbreaking event on July 16 in Maluku, which marked 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 classifies the Abadi Masela project as a key national energy initiative.
During its peak construction phase, the project is projected to create employment for over 12,000 workers. Indonesia plans to ensure that 30% of these jobs are filled by residents of Maluku and the Tanimbar Islands. Once operational, the facility could employ between 800 and 1,000 personnel. Officials estimate that the project could contribute $137.8 billion to Indonesia’s gross domestic product. Additionally, it is expected to add $95 billion to Maluku and $92 billion to the Tanimbar Islands. These projections encompass economic activity throughout both the construction and operational stages of the project.
Located in the Arafura Sea, the Abadi gas field is approximately 180 kilometers from Yamdena Island, with water depths ranging between 400 and 800 meters. The development includes subsea production systems, an offshore processing vessel, and a pipeline roughly 175 kilometers long. Plans also feature an onshore LNG plant and facilities for carbon capture and storage. The project aims for an annual output of 9.5 million tonnes of LNG and a daily production of up to 35,000 barrels of condensate.
Local demand prioritizes gas supply
Indonesia mandates that at least 60% of the gas produced be supplied to the domestic market. The remaining 40% may be exported. Domestic consumers are expected to include fertilizer manufacturers, power plants, and downstream industrial firms. 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 Indonesian Energy Ministry incorporated this domestic allocation into the approved development framework.
INPEX holds a 65% stake and manages the project, with Pertamina owning 20% and Petronas holding the remaining 15%. The production-sharing agreement extends 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 was approved in 2023. Front-end engineering activities commenced in 2025. The company aims to make a final investment decision by the end of 2027, with production expected to begin in the early 2030s.
Progress in engineering of key facilities
Engineering teams continue their work on the offshore vessel, subsea infrastructure, export pipeline, and the onshore LNG facility. Two contractor groups are conducting parallel design processes for the offshore vessel and liquefaction plant. This approach aims to facilitate the completion of technical plans and the selection of contractors prior to the final investment decision. The July groundbreaking marked the beginning of physical construction after more than twenty years of studies, regulatory reviews, and planning. Ongoing project preparations span 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 participate in supply and service activities during development. The government’s plans also include workforce training and infrastructure support. These figures for revenue, employment, and economic contribution are based on official projections as engineering, contracting, and construction efforts continue across the project components.