Masela Block Project to Contribute USD37.8 Billion in State Revenue

The Masela Block LNG Project is not only projected to become one of Indonesia’s largest gas projects but is also expected to serve as a driver of economic growth in the Eastern Indonesia region. In addition to producing energy supplies for national needs, this project is estimated to provide substantial state revenue while opening thousands of jobs. President Prabowo Subianto has conducted the groundbreaking for the Abadi Masela LNG Project, located approximately 160 kilometres off the coast of Yamdena Island in the Arafura Sea, Maluku. The gas field, with potential reserves reaching 18.54 trillion cubic feet (TCF), is a National Strategic Project (PSN) with an investment value of approximately USD20.9 billion, equivalent to Rp352 trillion. The project is designed to have a production capacity of 9.5 million tonnes of liquefied natural gas per year. Additionally, the Abadi Field will supply around 150 million cubic feet of gas per day for domestic industrial needs and produce approximately 35,000 barrels of condensate per day. Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia emphasised that the majority of gas production from the Abadi Field will be prioritised to meet domestic needs to strengthen national industry. “The gas produced will be at least 60 percent used to meet domestic needs, while a maximum of 40 percent will be for export,” Bahlil stated in Maluku. According to him, the domestic gas supply will become the foundation for downstream industry development, including a fertiliser industry to be built in the area surrounding the project. “A fertiliser downstream industry will be built here. Then some of the gas will also be channelled to PLN, PGN, and several private companies. This step simultaneously increases added value and encourages the creation of economic value in the region,” Bahlil said. Beyond strengthening national energy security, the government estimates the Abadi Masela Project will provide significant economic and fiscal benefits to the state. During the construction to operation period, the project is projected to generate direct state revenue of approximately USD37.8 billion. Indirect tax contributions are estimated to reach around USD6.43 billion. Bahlil added that the project’s impact will also be felt through large-scale job creation. During the construction phase, the project is estimated to absorb around 12,000 direct workers.