TANIMBAR ISLANDS, INDONESIA / RankWire.AI / – Indonesia expects the Abadi Masela LNG project to deliver about $37.8 billion in direct government revenue. Energy and Mineral Resources Minister Bahlil Lahadalia also projected $6.43 billion in indirect tax receipts. Officials released the figures after a July 16 groundbreaking ceremony in Maluku. The event marked the formal start of physical development for the $20.9 billion national strategic project. President Prabowo Subianto joined the ceremony online from Jakarta. The government classifies Abadi Masela as a major national energy development.
Abadi Masela LNG opens a major new phase in Indonesia’s gas development.
Construction could employ more than 12,000 people during its busiest phase, according to government projections. Indonesia plans to allocate 30% of those jobs to workers from Maluku and the Tanimbar Islands. The operational phase could support between 800 and 1,000 workers. Officials estimate the project could add $137.8 billion to Indonesia’s gross domestic product. They also project contributions of $95 billion to Maluku and $92 billion to the Tanimbar Islands. The figures cover economic activity expected across the project’s development and operating periods.
The Abadi gas field lies in the Arafura Sea, about 180 kilometers from Yamdena Island. Water depths across the offshore field range from 400 to 800 meters. The development includes subsea production equipment, an offshore processing vessel and a pipeline of about 175 kilometers. Plans also cover an onshore liquefied natural gas plant and carbon capture and storage facilities. The project targets annual production of 9.5 million tonnes of LNG. It also plans daily output of up to 35,000 barrels of condensate.
Domestic demand receives majority of gas
Indonesia requires the project to supply at least 60% of its gas to the domestic market. The remaining share may serve export customers, with overseas sales limited to 40%. Planned domestic users include fertilizer producers, power generators and downstream industrial companies. Pupuk Indonesia, PLN and PGN have emerged among the potential buyers identified by the government. The project also provides 150 million standard cubic feet of pipeline gas each day. Indonesia’s Energy Ministry included the domestic allocation in the approved development framework.
INPEX operates the project and holds a 65% participating interest. Pertamina owns 20%, while Petronas controls the remaining 15%. The production-sharing contract runs until November 15, 2055. INPEX discovered the Abadi field in 2000, and Indonesia approved an onshore development plan in 2019. Authorities cleared a revised plan that included carbon storage in 2023. Front-end engineering work began in 2025. INPEX targets a final investment decision by the end of 2027 and production during the early 2030s.
Engineering advances across core facilities
Engineering teams continue work on the offshore vessel, subsea systems, export pipeline and onshore LNG complex. Two contractor groups are carrying out parallel design work for the offshore vessel and liquefaction plant. The process will help INPEX complete technical plans and select contractors before the investment decision. The July groundbreaking followed more than two decades of field studies, regulatory reviews and development planning. Government officials described the ceremony as the start of physical construction. Project preparation continues across several offshore and onshore components.
The government has reserved a 10% participating interest for a company owned by Maluku Province. The field lies more than 12 nautical miles from the nearest island. The project framework also provides oil and gas revenue-sharing funds for the province. Indonesia’s Energy Ministry expects local companies to join supply and service activities during development. Government plans also cover workforce training and supporting infrastructure. The revenue, employment and economic contribution figures remain official projections as engineering, contracting and construction work move forward.
