Masela Block LNG Project Worth Rp340 Trillion Officially Breaks Ground
The Abadi Liquefied Natural Gas (LNG) project in the Masela Block, located in the Tanimbar Islands, Maluku, has officially begun. The project, launched by President Prabowo Subianto on 16 July 2026, carries an investment value of US$20.9 billion, or approximately Rp340 trillion, and is projected to become a key pillar of Indonesia’s energy supply, with a minimum of 60 per cent of its LNG production allocated for domestic needs.
The Ministry of Energy and Mineral Resources (ESDM) stated that the project is designed not only to strengthen energy security and sovereignty but also to ensure the economic benefits are felt by communities surrounding the project area. ESDM Spokesperson Dwi Anggia noted that public attention regarding who benefits from such a large-scale project is understandable.
The Masela Block Abadi LNG project and its associated facilities are targeted to produce 9.5 million tonnes of LNG per year, 150 million standard cubic feet per day of pipeline gas, and 35,000 barrels of condensate per day. The government has stipulated that a minimum of 60 per cent of the total LNG production be allocated to meet domestic needs, supporting strategic national industries ranging from fertiliser production to power generation.
Beyond hydrocarbon production, the project integrates Carbon Capture and Storage (CCS) technology to capture and store carbon emissions generated during operations. This integration is part of the production phase, positioning the project as part of Indonesia’s efforts to develop lower-emission energy sources. Dwi Anggia stated that the project not only strengthens energy security but also demonstrates Indonesia’s commitment to a clean and sustainable energy transition.
The government views the Masela Block development as strategically positioned to meet energy needs while supporting the national energy transition agenda. The project is expected to generate a significant economic impact for communities around the project area, with an estimated absorption of up to 12,000 workers. The government is also preparing vocational education and training programmes for local residents, particularly the youth of the Tanimbar Islands, aimed at enhancing their skills so they can participate in the project’s development and benefit from the resulting economic activity. The government hopes this large-scale project will not only yield benefits from energy production but also drive economic development in Eastern Indonesia.