Jakarta. Indonesia’s long-delayed Abadi liquefied natural gas (LNG) project in the Masela Block, Maluku, is moving closer to realization, with the government announcing that the crucial engineering, procurement, and construction (EPC) tender is scheduled to begin in 2026.

Energy and Mineral Resources Minister Bahlil Lahadalia said on Friday that project operator Inpex Masela Ltd, alongside its joint venture partners Pertamina Hulu Energi Masela and Petronas Masela, began the front-end engineering and design (FEED) phase in August 2025.

“This is one of the largest gas blocks in Maluku. After 26 years, we are finally seeing real progress. The FEED tender has started this year, and we expect the EPC tender to commence in 2026,” Bahlil told reporters at the Presidential Palace in Jakarta.

Once the EPC phase concludes, Bahlil said, the project could move into production as targeted by President Prabowo Subianto. “When EPC is complete, we will pursue gas lifting in line with the President’s production goals,” he added.

The Abadi LNG project is expected to produce around 10.5 million tons of LNG equivalent per year, including 9.5 million tons of LNG and approximately 35,000 barrels of condensate per day. The annual LNG output would represent more than 10 percent of Japan’s total LNG imports.

As a national strategic project since 2017, the Masela Block is key to driving economic growth in eastern Indonesia and supporting the country’s net-zero carbon target by 2060. The production-sharing contract runs until November 2055, covering a 2,503-square-kilometer offshore area in the Arafura Sea, roughly 180 kilometers southwest of the Tanimbar Islands.

The project will also incorporate carbon capture and storage (CCS) technology to ensure sustainable operations. With an estimated investment of $20.94 billion, the development is projected to create 12,600 jobs during construction and 850 during operations, according to Deputy Energy Minister Yuliot Tanjung.

If all goes according to plan, production is expected to begin in 2029, marking a long-awaited milestone in Indonesia’s LNG sector.