(TheIndoDaily.com) – After over two decades of waiting since the discovery of gas reserves at the Abadi Field in 2000, the physical construction of the Liquefied Natural Gas (LNG) Abadi Masela Project officially began on Thursday, July 16.
The groundbreaking ceremony, witnessed by President Prabowo Subianto, marks the start of this USD20.9 billion national strategic project. It is expected to bolster national energy security while driving economic growth in the Tanimbar Islands, Maluku, through job creation, investment influx, and regional economic activities.
Minister of Energy and Mineral Resources Bahlil Lahadalia stated that the LNG Abadi Masela Project is projected to offer substantial economic and fiscal benefits for both the central and local governments. In addition to increasing state revenue, the project will open up employment opportunities for local communities.
“The Abadi Masela Project is expected to provide significant economic and fiscal benefits, including national and regional revenue and job creation, with 30% of these jobs prioritized for local residents of Maluku and the Tanimbar Islands,” Bahlil reported during the groundbreaking ceremony for the National Strategic Project of Liquefied Natural Gas (LNG) Abadi Masela in Tanimbar Islands, Maluku, on Thursday, July 16.
Once operational, the Abadi Masela Field is expected to contribute USD137.8 billion to the national gross domestic product (GDP). The project is also anticipated to boost Maluku’s Regional Gross Domestic Product (GRDP) by USD95 billion and the Tanimbar Islands’ GRDP by USD92 billion.
Moreover, the project is aimed at fostering the growth of supporting industries and SMEs, accelerating regional infrastructure development, enhancing knowledge and technology transfer, and strengthening national energy supply with domestic pipeline gas provision of 150 MMSCFD for industrial needs.
“Apart from its economic and fiscal benefits, the Abadi Masela Project will also promote growth in supporting industries and SMEs in Maluku, accelerate regional infrastructure development, enhance knowledge and technology transfer, and strengthen national energy security by supplying domestic pipeline gas of 150 MMSCFD for industrial needs,” Bahlil added.
On the same occasion, President Prabowo Subianto emphasized that the start of physical construction of the LNG Abadi Masela Project marks a significant moment after an almost three-decade wait.
“This project has been awaited for nearly three decades. Finally, today we begin construction, and it must not be hindered; it should be completed as swiftly as possible,” Prabowo emphasized while witnessing the virtual groundbreaking ceremony from the State Palace in Jakarta.
Empowering Local Economy
The government is committed to ensuring that the people of Maluku benefit from the LNG Abadi Masela Project. One measure includes granting a 10 percent Participating Interest (PI) to the Regional-Owned Enterprises (BUMD) of Maluku Province. This policy was implemented as the Abadi Field is located in the Masela Block, Arafura Sea, more than 12 nautical miles from the nearest island.
This PI ownership, alongside oil and gas revenue-sharing funds (DBH), is expected to strengthen local fiscal capacity and boost revenue for the Maluku Provincial Government.
Ricky Jauwerissa, Regent of the Tanimbar Islands, stated that additional revenue from this project will be crucial for accelerating development in his region.
“This revenue is projected to serve as a key driver for financing various poverty alleviation programs, enhancing health services, and strengthening administrative status to expedite development bureaucracy in the island region,” Ricky stated at the same location.
Employment Opportunities
The project is also expected to provide direct benefits by creating jobs. According to studies conducted by Universitas Indonesia and Universitas Pattimura, the construction of LNG Abadi Masela is estimated to employ over 12,000 workers at its peak construction phase.
This integrated oil and gas infrastructure development is hoped to stimulate the local economy, encourage community enterprises, improve human resources quality, and enhance connectivity in eastern Indonesia.
As physical construction begins, local communities are now hoping that the LNG Abadi Masela project will soon deliver tangible benefits. These include job creation, increased regional revenue, local economic development, and a secure gas supply for domestic industrial needs.
By Staff Reporter
Construction of the LNG Abadi Masela Project Commences
(TheIndoDaily.com) – After over two decades of waiting since the discovery of gas reserves at the Abadi Field in 2000, the physical construction of the Liquefied Natural Gas (LNG) Abadi Masela Project officially began on Thursday, July 16.
The groundbreaking ceremony, witnessed by President Prabowo Subianto, marks the start of this USD20.9 billion national strategic project. It is expected to bolster national energy security while driving economic growth in the Tanimbar Islands, Maluku, through job creation, investment influx, and regional economic activities.
Minister of Energy and Mineral Resources Bahlil Lahadalia stated that the LNG Abadi Masela Project is projected to offer substantial economic and fiscal benefits for both the central and local governments. In addition to increasing state revenue, the project will open up employment opportunities for local communities.
“The Abadi Masela Project is expected to provide significant economic and fiscal benefits, including national and regional revenue and job creation, with 30% of these jobs prioritized for local residents of Maluku and the Tanimbar Islands,” Bahlil reported during the groundbreaking ceremony for the National Strategic Project of Liquefied Natural Gas (LNG) Abadi Masela in Tanimbar Islands, Maluku, on Thursday, July 16.
Once operational, the Abadi Masela Field is expected to contribute USD137.8 billion to the national gross domestic product (GDP). The project is also anticipated to boost Maluku’s Regional Gross Domestic Product (GRDP) by USD95 billion and the Tanimbar Islands’ GRDP by USD92 billion.
Moreover, the project is aimed at fostering the growth of supporting industries and SMEs, accelerating regional infrastructure development, enhancing knowledge and technology transfer, and strengthening national energy supply with domestic pipeline gas provision of 150 MMSCFD for industrial needs.
“Apart from its economic and fiscal benefits, the Abadi Masela Project will also promote growth in supporting industries and SMEs in Maluku, accelerate regional infrastructure development, enhance knowledge and technology transfer, and strengthen national energy security by supplying domestic pipeline gas of 150 MMSCFD for industrial needs,” Bahlil added.
On the same occasion, President Prabowo Subianto emphasized that the start of physical construction of the LNG Abadi Masela Project marks a significant moment after an almost three-decade wait.
“This project has been awaited for nearly three decades. Finally, today we begin construction, and it must not be hindered; it should be completed as swiftly as possible,” Prabowo emphasized while witnessing the virtual groundbreaking ceremony from the State Palace in Jakarta.
Empowering Local Economy
The government is committed to ensuring that the people of Maluku benefit from the LNG Abadi Masela Project. One measure includes granting a 10 percent Participating Interest (PI) to the Regional-Owned Enterprises (BUMD) of Maluku Province. This policy was implemented as the Abadi Field is located in the Masela Block, Arafura Sea, more than 12 nautical miles from the nearest island.
This PI ownership, alongside oil and gas revenue-sharing funds (DBH), is expected to strengthen local fiscal capacity and boost revenue for the Maluku Provincial Government.
Ricky Jauwerissa, Regent of the Tanimbar Islands, stated that additional revenue from this project will be crucial for accelerating development in his region.
“This revenue is projected to serve as a key driver for financing various poverty alleviation programs, enhancing health services, and strengthening administrative status to expedite development bureaucracy in the island region,” Ricky stated at the same location.
Employment Opportunities
The project is also expected to provide direct benefits by creating jobs. According to studies conducted by Universitas Indonesia and Universitas Pattimura, the construction of LNG Abadi Masela is estimated to employ over 12,000 workers at its peak construction phase.
This integrated oil and gas infrastructure development is hoped to stimulate the local economy, encourage community enterprises, improve human resources quality, and enhance connectivity in eastern Indonesia.
As physical construction begins, local communities are now hoping that the LNG Abadi Masela project will soon deliver tangible benefits. These include job creation, increased regional revenue, local economic development, and a secure gas supply for domestic industrial needs.
By Staff Reporter