The Abadi LNG project, developing the offshore Masela block in Indonesia’s Maluku province, has officially broken ground with a total investment of $21 billion, it is reported. The groundbreaking ceremony was held on July 16, 2026, attended by President Prabowo Subianto, and the project is regarded as commercializing one of the largest undeveloped offshore gas fields in the Asia-Pacific region.
The Abadi project involves developing the offshore gas field at the Masela block to produce 9.5 million tons of LNG (Liquefied Natural Gas) per year. Alongside this, a gas pipeline with a capacity of 150 million cubic feet per day and condensate production facilities of up to 35,000 barrels per day will also be built. The project incorporates CCS (Carbon Capture and Storage) technology, with approximately $1 billion of the total investment allocated to the CCS component, it is reported. The specific EPC (Engineering, Procurement and Construction) contractor is expected to be selected after FEED (Front-End Engineering Design) is completed at the end of 2026.
The Masela block is one of the largest undeveloped offshore gas fields in the Asia-Pacific region, and the project reportedly reached final investment decision after years of discussion over the development approach, including offshore versus onshore liquefaction. This groundbreaking is also linked to the Indonesian government’s broader resource development expansion policy, it is reported.
Key items to watch include the selection of the EPC contractor following FEED completion, and the subsequent construction schedule needed to meet the 2030 production startup target.