Indonesia's Masela LNG Project Investment Reaches $21 Billion, Includes Carbon Capture Tech

Indonesia's Minister of Energy and Mineral Resources, Bahlil Lahadalia, has pegged the investment value of the Masela LNG Abadi project at approximately $21 billion. This figure includes an additional $1 billion allocated for carbon capture and storage (CCS) technology. The announcement came during the groundbreaking ceremony for the National Strategic Project in Tanimbar, Maluku, on Thursday, July 16, 2026.

The Masela project is designed to produce 9.5 million tons of LNG per year. It will also yield 35,000 barrels of condensate and 150 million cubic feet of natural gas daily. Minister Bahlil emphasized that at least 60% of the natural gas produced will meet domestic demand, with a maximum of 40% designated for export. This allocation aims to strengthen Indonesia's energy resilience with cleaner and more sustainable energy sources.

Beyond energy security, the project signifies Indonesia's commitment to its national energy transition agenda through the integration of CCS technology. Bahlil highlighted the project's expected economic contributions, including long-term investment, accelerated development in Eastern Indonesia, and significant job creation. Approximately 12,000 jobs are anticipated during the construction phase alone.

The LNG Abadi project in the Masela Block, located in the Arafura Sea, is operated by INPEX Masela, Ltd. The field is situated about 12 miles from the nearest island and 750 km south of Ambon, Maluku's capital. The water depth in the Abadi field ranges from 400 to 800 meters. The southern part of the Masela Block borders Indonesian and Australian waters, with the entire block lying within Indonesian territory.