Indonesia Unveils $21 Billion Abadi Masela LNG Project Amid Energy Security Concerns

Indonesia has finally started construction on its long-awaited Abadi Masela liquefied natural gas (LNG) project, a major multi-billion-dollar investment that will significantly boost domestic energy security. The $21 billion (£15.8 billion) project is being developed by Japan's Inpex Corp in partnership with Indonesia's Pertamina and Malaysia's Petronas.

The Abadi Masela gas field contains an estimated 6.97 trillion cubic feet of natural gas reserves, making it one of Indonesia's largest undeveloped offshore gas resources. The project is expected to produce 9.5 million tonnes of LNG annually, along with 150 million standard cubic feet per day of pipeline gas and 35,000 barrels of condensate a day.

Bahlil Lahadalia, Indonesia's minister for energy and mineral resources, said that 60% of the gas output will be allocated to the domestic market. The project will also involve carbon capture and storage technology in Indonesia's first large-scale LNG developments, combining emissions-reduction measures from the outset.

The Abadi Masela project has been delayed for decades, with the agreement signed in 1998 only kicking off construction this month. Indonesia was once the world's largest LNG exporter but lost market share over the past two decades due to ageing gas fields and delays in new projects.