A groundbreaking ceremony has begun for the construction of a multi-billion-dollar liquefied natural gas project, operated by Inpex Masila, a subsidiary of Japan’s Inpex, in the Indonesian Masila region of Asia.
Groundbreaking ceremony for Eternal LNG projectThe project, designed to produce up to 9.5 million tons of LNG per year, was unveiled on 16 July 2026, with the Indonesian government’s announcement disseminated via state news agency Antara, which frequently distributes official government statements.
According to what was reported by the news agency Preparing reportsinvest for this Liquefied natural gas project It reached approximately $21 billion, based on a statement from Bahlil LahadaliaIndonesian Minister of Energy and Mineral Resources (ESDM).
During his speech at the groundbreaking ceremony for the National Strategic Project (PSN), Bahlil reportedly said that the total estimated investment amount includes an additional $1 billion dedicated exclusively to carbon capture and storage (CCS) technology.
Inpex Masila operates the Al-Abadi LNG project with a 65% stake, while its partners are Pertamina (20%) and Petronas (15%), as follows: Shell exits in 2023. The Production Sharing Contract (PSC) runs until November 15, 2055.
With a production capacity of about 150 million cubic feet of natural gas per day Al-Abadi projectIt is expected that condensate production will reach 35 thousand barrels per day.
The gas field is located in the Arafura Sea, off Maluku Province in eastern Indonesia, in waters about 750 kilometers south of Ambon and 170-180 kilometers southwest of the Tanimbar Islands region, near the maritime border between Indonesia and Australia.
The country’s government has set strict distribution quotas for the field’s production, with at least 60% of the gas allocated to domestic demand, leaving up to 40% for export, the official Indonesian news agency reported.
The Asian country believes that this LNG project will be crucial in enhancing its energy security through cleaner and more sustainable energy supplies, as it will use carbon capture and storage technology, promoting the country’s energy transition agenda.
According to Inpex, the introduction of carbon capture and storage technology will neutralize carbon dioxide emitted from natural gas production in the Abadi gas field. The operator intends to market the LNG not only to buyers in Indonesia where demand is expected to grow, but also to buyers in East Asia, Southeast Asia, South Asia and elsewhere.
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