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BP to expand Indonesia’s Tangguh LNG facility

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LNG Industry,

BP has announced that it has taken a positive final investment decision (FID) on the Tangguh Expansion Project in the Papua Barat Province in Indonesia. The expansion will involve the addition of a third LNG process train (Train 3), which will add 3.8 million tpy of production capacity to the facility. This will bring the overall production capacity of the plant to 11.4 million tpy. In addition to this, the project also includes an expanded LNG loading facility, supporting infrastructure, 13 new production wells and two offshore platforms.

This positive FID follows the approval of the Plan of Development II by the Indonesian government in late 2012. BP claims that engineering, procurement and construction (EPC) contracts should be awarded in 3Q16, with construction to follow shortly after. Operation of the expanded project is expected to commence in 2020.

Moreover, the project is helping to create jobs for the area. BP claims the Tangguh expansion project has helped provide 10 000 jobs over the project period.

The Chief Executive of BP, Bob Dudley, said: “The Tangguh Expansion Project demonstrates BP and its partners’ continued confidence in Indonesia and our commitment to work closely with the government to meet the country’s energy needs, while creating thousands of jobs.”

The BP Regional President Asia Pacific, Christina Verchere, said: “This final investment decision marks the culmination of many years of hard work by BP, our partners, and the Indonesian Government. We are pleased to reach this major milestone and look forward to continued cooperation as we progress the largest upstream project in the eastern part of Indonesia.”

BP claims that the project will to meet growing energy demand in Indonesia. State electric company PT. PLN (Persero) has already purchased 75% of Train 3’s annual LNG production, for instance. The remaining volumes are under contract to Japan’s Kansai Electric Power Co. – Train 3’s other foundation buyer.

Edited from press release by David Rowlands

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