Masela LNG project valued at US$21 billion investment: ESDM Minister

Tanimbar, Maluku (ANTARA) - Energy and Mineral Resources (ESDM) Minister Bahlil Lahadalia announced that the total investment for the Abadi Masela Liquefied Natural Gas (LNG) project has reached approximately US$21 billion.

Speaking at the groundbreaking ceremony for the National Strategic Project (PSN) here on Thursday, Bahlil stated that the massive investment includes an additional US$1 billion dedicated exclusively to Carbon Capture and Storage (CCS) technology.

The Abadi Masela project is designed to produce up to 9.5 million tons of LNG per year. Additionally, the project is targeted to yield up to 35,000 barrels of condensate per day and around 150 million cubic feet of natural gas per day.

To support the country's energy independence, the government has set strict distribution quotas for the field's output.

"At least 60 percent of the gas will be used to meet domestic demand, and a maximum of 40 percent will be used for export," Bahlil noted.

The minister expressed optimism that the project will play a pivotal role in strengthening Indonesia's energy security by providing a cleaner, more sustainable energy supply.

Backed by state-of-the-art CCS technology, the development reflects Indonesia's firm commitment to accelerating its national energy transition agenda.

Furthermore, the megaproject is expected to stimulate economic growth in Eastern Indonesia—generating significant multiplier effects through long-term investment, business opportunities, and local employment.

"This project creates jobs, absorbing around 12,000 workers during the construction period. This is the construction period, yes," Bahlil added.

The Abadi LNG project is operated by Japanese energy giant INPEX Corporation through its subsidiary, INPEX Masela, Ltd.

The offshore Abadi Field is located in the Masela Block within the Arafura Sea, roughly 750 kilometers south of Ambon, the capital of Maluku Province, and 12 miles from the nearest island.

Operating in water depths ranging from 400 to 800 meters, the project borders the maritime boundary between Indonesia and Australia, though the block itself sits entirely within Indonesian sovereign territory.

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Translator: Putu Indah Savitri, Yashinta Difa

Editor: Azis Kurmala

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