TEMPO.CO, Jakarta - Indonesian Ministry of Energy and Mineral Resources said 60 percent of the gas produced from the Abadi LNG Project in the Masela Block will be allocated to meet domestic needs. The gas will be prioritized to support the fertilizer industry, power plants, gas networks, and downstream programs, while the export portion will be limited to a maximum of 40 percent.
"We will allocate a minimum of 60 percent of the gas production from the Masela Block to meet domestic needs and a maximum of 40 percent for export. Some of the gas will be utilized for the downstream needs of PT Pupuk, which plans to build an industry here," said Energy Minister Bahlil Lahadalia in a written statement on Friday, July 17, 2026.
In addition to the fertilizer industry, the gas will also be supplied to state-owned electricity company PLN, PT Perusahaan Gas Negara (PGN), and several private companies. This, Bahlil believed, will bolster the added value of the natural resources while creating new economic activities in Maluku.
The ministry, alongside SKK Migas, has ensured that the domestic allocation was included in the Plan of Development (PoD) for the project.
The Abadi gas field in the Masela Working Area is one of the National Strategic Projects located approximately 180 kilometers off the coast of Yamdena Island, Arafura Sea. The cooperation contract for this project is set to become valid until 2055 and is designed to produce 9.5 million tons of LNG per year, a pipeline gas of 150 million standard cubic feet per day (MMSCFD), and around 35 thousand barrels of condensate per day.
The investment in the Abadi Masela LNG project reaches $21 billion or around IDR 342 trillion, including an additional US$1 billion for carbon capture and storage technology. This oil and gas block is managed by INPEX Corporation through its subsidiary INPEX Masela, Ltd. as the operator.
The project development includes underwater production facilities, Floating Production Storage and Offloading (FPSO), a gas pipeline approximately 175 kilometers long to the mainland, and the construction of an LNG plant onshore. The project will also implement Carbon Capture and Storage (CCS) technology to reduce carbon emissions in the LNG production process.
Read: Inpex: Masela LNG Integral to Japan's Energy Security
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