$21 Billion! Abadi LNG Project Breaks Ground in Indonesia

en.Wedoany.com Reported - On July 16, 2026, the Abadi LNG project in Indonesia's Masela Block officially broke ground, marking the start of construction for this massive, high-cost Asian energy project. The project is operated by Inpex Masela, a subsidiary of Japan's Inpex.

Indonesia's Minister of Energy and Mineral Resources, Bahlil Lahadalia, announced via the national news agency Antara that the total project investment is approximately $21 billion, including $1 billion specifically allocated for carbon capture and storage (CCS) technology.

Inpex Masela holds a 65% stake in the project, with partners including Indonesia's state-owned oil company Pertamina (20% stake) and Malaysia's Petronas (15% stake). Following Shell's exit in 2023, the project's production sharing contract is valid until November 15, 2055.

The Abadi project is designed to produce 9.5 million tons of LNG annually, with a natural gas production capacity of approximately 150 million cubic feet per day and condensate output expected to reach up to 35,000 barrels per day. Discovered in 2000, the Abadi gas field is located in the Arafura Sea, near Indonesia's Maluku Province, approximately 750 kilometers south of Ambon and 170 to 180 kilometers southwest of the Tanimbar Islands, adjacent to Indonesia's maritime border with Australia.

The Indonesian government has imposed strict allocation quotas on the project's output, requiring at least 60% of the natural gas to be prioritized for domestic demand, with the remaining up to 40% available for export.

The Indonesian government believes that the project's adoption of CCS technology will effectively neutralize carbon dioxide emissions from natural gas production in the Abadi field, providing a cleaner and more sustainable energy supply while strongly advancing the nation's energy transition and energy security strategy.

According to Inpex, the LNG produced in the future will not only serve Indonesia's growing domestic market but will also be sold to regions including East Asia, Southeast Asia, and South Asia.