Japan’s INPEX has launched construction of the Abadi Masela LNG project in Indonesia, marking the beginning of one of the country’s largest energy initiatives (Indonesian government press release, 16/07/2026).
The Abadi Masela LNG National Strategic Project (PSN) is being developed by the Japanese company (65% interest) in partnership with Pertamina (20%) and Malaysia’s Petronas (15%), with an estimated investment of USD20.9bn. The project is expected to produce 9.5 Mt/year of LNG, deliver 150 mcf/d (1.5 bcm/year) of pipeline gas to the domestic market, and generate around 35,000 bbl/d of condensate. Furthermore, the Abadi Masela LNG project will become Indonesia’s first LNG project to incorporate Carbon Capture and Storage (CCS) technology from the development stage.
Indonesia’s gas exports have decreased by around 62% since 2010 (-6.3%/year), reaching 16 bcm in 2025 (-12% compared to 2020). Natural gas production rose remained stable in 2025 at 70.4 bcm, after decreasing regularly from 2010 to 2023 (-2%/year). The rapid growth in the country’s natural gas production seen in the 1990s (6%/year) slowed down over the 2000 decade because of depleting fields (0.6%/year between 2000 and 2008) (Enerdata Global Energy Research).
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