Japanese oil and gas company, INPEX Masela Ltd., together with the Upstream Oil and Gas Regulatory Task Force (SKK Migas) and related stakeholders inaugurated the Front End Engineering Design (FEED) phase of the Abadi LNG project on Thursday, August 28, 2025.

The event is a milestone for Indonesia in its efforts to strengthen national energy security and attract strategic investment in the oil and gas sector. It also marks the start of the FEED phase, or technical engineering design, operated by INPEX, through its subsidiary INPEX Masela Ltd.

Takayuki Ueda, President and CEO of INPEX Corporation, said that the project, with an investment value of US$20.94 billion (Rp342.56 trillion), will provide substantial added value for Indonesia.

"This project will contribute to the Indonesian economy, not only by improving energy security and supply security, but also by stimulating economic growth," Ueda said.

The project is expected to contribute US$150 billion (Rp2,454 trillion) to Indonesia's Gross Domestic Product (GDP), while job creation is expected to reach 70,000 people over 30 years.

"This will also be the first energy project in Indonesia to implement carbon capture and storage (CCS) from the start of production," he cited.

"This project is not just an ordinary oil and gas project, but one of the pillars of energy security and a driving force for national and regional development," said Yuliot Tanjung, Deputy Minister of Energy at the inauguration ceremony for the start of the Front-End Engineering and Design (FEED) phase for the Abadi LNG Project, Masela Block in Indonesia, Thursday, August 28, 2025, in Jakarta.

The FEED phase begins with design optimization, technical and implementation risk reduction, and increased cost and schedule certainty.

The first phase will be to expedite the signing of non-binding heads of agreements (HOAs) with many potential customers. Existing agreements will also be upgraded to binding long-term contracts, including volume and price, as soon as possible.

Second will be to accelerate financing arrangements with various financial institutions, including JBIC, Japanese public institutions, and other international banks, to secure competitive financing.

Finally, Ueda said they are strengthening engagement with the local community, expressing optimism that his team can secure local support for the success of the Abadi Masela project.

"So far, we have received positive indications from many financial institutions and bankers. However, we will continue our efforts because securing competitive financing is a key factor in the success of the Abadi project," he added.

The Abadi LNG project, located offshore the Arafura Sea, Maluku, is a national strategic project (PSN) established in 2017. FEED itself is the process of reviewing and determining the specifications of the facilities that will produce and process hydrocarbons from the Abadi Gas Field, including the Onshore LNG Plant (OLNG).

Through the FEED phase, the Abadi LNG project is moving closer to the construction and production phase. The success of this project can accelerate the energy transition and pave the way for sustainable economic development in Eastern Indonesia.

This project will have a production capacity of around 9.5 million tons of LNG per year and 150 million cubic feet of piped gas per day (MMSCFD), and is projected to provide significant multiplier effects, such as absorbing labor, increasing domestic industrial capacity, and making a significant contribution to state revenue.