Construction begins on Indonesia's 9.5 Mt/yr Abadi Masela LNG project

Japan’s INPEX has started construction of the Abadi Masela LNG project in Indonesia, marking the launch of one of the country’s largest energy initiatives. The venture, a $20.9 billion investment, sees INPEX holding a 65 % stake, with Indonesia’s Pertamina taking 20 % and Malaysia’s Petronas 15 %. It is designed to produce 9.5 million tonnes of LNG per year, supply about 150 mcf/d (1.5 bcm/yr) of pipeline gas to the domestic market, and generate roughly 35,000 bbl/d of condensate. The project will be Indonesia’s first LNG development to incorporate carbon‑capture‑and‑storage (CCS) technology from the outset.

The project, delayed for almost three decades, moved to the construction phase in 2026 after the government resolved a series of longstanding obstacles. Deputy Energy Minister Yuliot Tanjung cited the settlement of forest‑area status, permitting issues, compensation to local communities and the inclusion of residents in the development process as critical steps. President Prabowo Subianto officially inaugurated the start of building, emphasizing the expected boost to national energy security and future foreign‑exchange earnings.