TANIMBAR ISLANDS, INDONESIA / RankWire.AI / – Indonesia anticipates that the Abadi Masela LNG project will generate approximately $37.8 billion in direct government income. Energy and Mineral Resources Minister Bahlil Lahadalia also forecasted $6.43 billion in indirect tax revenues. These 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 initiative. President Prabowo Subianto participated remotely from Jakarta in the ceremony. The government designates Abadi Masela as a key project for national energy development.
During its peak construction phase, employment is projected to exceed 12,000 workers. Indonesia aims to assign 30% of these roles to residents of Maluku and the Tanimbar Islands. Once operational, the project could sustain between 800 and 1,000 jobs. Authorities estimate the development could add $137.8 billion to Indonesia’s gross domestic product, with projections of $95 billion benefiting Maluku and $92 billion reaching the Tanimbar Islands. These estimates encompass economic activity throughout the project’s construction and operational phases.
The Abadi gas field is situated 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 systems, an offshore processing vessel, and a pipeline about 175 kilometers long. Additionally, plans feature an onshore liquefied natural gas facility and carbon capture and storage infrastructure. The project aims to produce 9.5 million tonnes of LNG annually, with daily condensate output reaching up to 35,000 barrels.
Local gas primarily for domestic consumption
Indonesia mandates that at least 60% of the project’s gas supply be allocated for domestic use. The remaining 40% is intended for export markets. Domestic consumers include fertilizer manufacturers, power plants and downstream industrial firms. The government has identified potential buyers such as Pupuk Indonesia, PLN and PGN. The project will also deliver 150 million standard cubic feet of pipeline gas daily. The domestic allocation has been incorporated into the approved development framework by Indonesia’s Energy Ministry.
INPEX is the operator of the project, holding a 65% stake. Pertamina owns 20%, while Petronas controls the remaining 15%. The production-sharing agreement extends until November 15, 2055. Discovered in 2000, the Abadi field received approval for an onshore development plan in 2019, with a revised plan including carbon storage approved in 2023. Front-end engineering began in 2025, with a final investment decision targeted for the end of 2027 and production expected to start in the early 2030s.
Progress in engineering for major facilities
Design activities are ongoing for the offshore vessel, subsea systems, export pipeline, and onshore LNG plant. Two contractor teams are conducting parallel design work for the offshore vessel and liquefaction facilities to facilitate technical planning and contractor selection prior to the final investment decision. The groundbreaking event in July marked the culmination of over twenty years of field studies, regulatory assessments, and development planning efforts. Officials described it as the start of physical construction, with multiple offshore and onshore components still in development stages.
A 10% participating interest has been reserved for a company owned by Maluku Province. The field is located more than 12 nautical miles from the nearest island. The project framework also includes provisions for oil and gas revenue-sharing funds intended for the province. Indonesia’s Energy Ministry anticipates local companies will participate in supply and service activities during development. Plans also encompass workforce training and infrastructure support. These revenue, employment, and economic impact forecasts remain as official projections as engineering, contracting, and construction work advance.