Groundbreaking for the Abadi Gas Project in the Masela Block in July 2026
Indonesia’s Ministry of Energy and Mineral Resources said in June 2026 that land acquisition for the Abadi gas project in the Masela Block, off the coast of Maluku, was complete and that a groundbreaking was planned for early July. The government is targeting construction in 2027 and first production between 2029 and 2030. State gas company PGN has also reached an agreement in principle with INPEX to buy LNG and natural gas from the project, with plans to negotiate a binding supply agreement to help meet domestic gas demand.
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Liputan6.com-Immanuel Christian
Indonesia’s Abadi gas project in the Masela Block reached a milestone in June 2026 when the Ministry of Energy and Mineral Resources confirmed that all land needed for the development had been secured. The ministry said a groundbreaking was planned for early July. Located in the Arafura Sea off Maluku, the development is one of Indonesia’s largest National Strategic Projects.
The government is targeting the start of construction in 2027. Laode Sulaeman, Director General of Oil and Gas, cited 2029 as the target for first production, while Energy and Mineral Resources Minister Bahlil Lahadalia gave a broader window of 2029 to 2030.
The project has faced decades of delays, including investment hurdles. Bahlil said the necessary decisions and studies had been completed and that he had asked INPEX to move ahead. He also reported progress in front-end engineering and design, a key stage in preparing the project for construction.
On the buyer side, state gas company PT Perusahaan Gas Negara (PGN) has agreed with INPEX on key commercial principles for buying liquefied natural gas (LNG) and natural gas from the project. PGN President Director Arief K. Risdianto said the planned purchases would help meet demand from domestic customers using gas produced in Indonesia.
INPEX operates the Masela Block alongside joint venture partners PT Pertamina Hulu Energi (PHE) and Petronas Masela Sdn Bhd. The next step is for PGN and the project partners to negotiate a binding sale and purchase agreement covering both LNG and natural gas supplies.
Arief said PGN’s role as a domestic buyer could help move the project toward a final investment decision. The arrangement would connect two parts of the Pertamina Group’s gas business, with PHE participating in upstream development and PGN securing supplies for domestic customers downstream.
Indonesia’s Abadi gas project in the Masela Block reached a milestone in June 2026 when the Ministry of Energy and Mineral Resources confirmed that all land needed for the development had been secured. The ministry said a groundbreaking was planned for early July. Located in the Arafura Sea off Maluku, the development is one of Indonesia’s largest National Strategic Projects.
The government is targeting the start of construction in 2027. Laode Sulaeman, Director General of Oil and Gas, cited 2029 as the target for first production, while Energy and Mineral Resources Minister Bahlil Lahadalia gave a broader window of 2029 to 2030.
The project has faced decades of delays, including investment hurdles. Bahlil said the necessary decisions and studies had been completed and that he had asked INPEX to move ahead. He also reported progress in front-end engineering and design, a key stage in preparing the project for construction.
On the buyer side, state gas company PT Perusahaan Gas Negara (PGN) has agreed with INPEX on key commercial principles for buying liquefied natural gas (LNG) and natural gas from the project. PGN President Director Arief K. Risdianto said the planned purchases would help meet demand from domestic customers using gas produced in Indonesia.
INPEX operates the Masela Block alongside joint venture partners PT Pertamina Hulu Energi (PHE) and Petronas Masela Sdn Bhd. The next step is for PGN and the project partners to negotiate a binding sale and purchase agreement covering both LNG and natural gas supplies.
Arief said PGN’s role as a domestic buyer could help move the project toward a final investment decision. The arrangement would connect two parts of the Pertamina Group’s gas business, with PHE participating in upstream development and PGN securing supplies for domestic customers downstream.
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