Indonesia's Abadi Masela Project Signs Domestic Gas Sales Agreements With Three Buyers

The companies developing Indonesia's Abadi gas project in the Masela Block signed gas sales agreements with three domestic buyers on Wednesday, October 28, in a step towards securing customers for the proposed large-scale energy development.

Inpex Masela and its project partners entered into liquefied natural gas sales arrangements with PLN Energi Primer Indonesia, the energy procurement business associated with the state electricity group, and with gas distributor Perusahaan Gas Negara (PGN). A separate gas sales agreement was signed with state-owned fertiliser producer Pupuk Indonesia, which is expected to use pipeline gas.

The signings took place during the FOREK Hulu Migas 2026 upstream oil and gas forum in Jakarta. Energy and Mineral Resources Minister Bahlil Lahadalia and the head of upstream regulator SKK Migas, Djoko Siswanto, witnessed the agreements, according to reporting from the event.

The contracts follow domestic gas allocation approvals described by officials on October 27. Those earlier approvals were not the same as the commercial agreements signed on Wednesday. The distinction matters because identifying buyers and completing sales documentation are among the steps needed before the consortium can commit to full project investment.

The Abadi Masela project is designed to develop gas resources offshore eastern Indonesia for both liquefied natural gas and pipeline supply. It remains a development project: signing offtake agreements does not mean commercial gas production has begun, nor does it establish that the final investment decision has already been made.

The new domestic arrangements provide additional commercial clarity for electricity, gas distribution and fertiliser demand. The developers must still complete remaining investment and project-execution milestones before the planned supplies can be delivered.