BP awards FEED contracts for Tangguh LNG expansion

On behalf of the Tangguh Partners, BP has announced the following two consortia have been awarded the onshore Front End Engineering and Design (FEED) contract for the US$ 12 billion Tangguh LNG Expansion Project (Train 3):

• PT. Tripatra Engineers and Constructors, PT. Tripatra Engineering, PT. Chiyoda International Indonesia, PT. Saipem Indonesia, PT. Suluh Ardhi Engineering and Chiyoda Corporation Consortium.
• PT. Rekayasa Industri, JGC Corporation, PT. KBR Indonesia and PT. JGC Indonesia Consortium.

Train 3 will build on the safe and reliable operations of the two existing liquefaction trains at the Tangguh site, which is located in Teluk Bintuni Regency in Papua Barat province of Indonesia. The project will add 3.8 million tpa liquefaction capacity to Tangguh, bringing total capacity to 11.4 million tpa.

In addition to the award of the onshore FEED, BP and the Tangguh Partners signed a sales and purchase agreement with Indonesia’s state owned electricity company PT. PLN (Persero) to supply up to 1.5 million tons of LNG each year from 2015 to 2033. Supply will initially be provided from Tangguh’s existing two LNG trains. The agreement commits 40% of annual production from Train 3 to the domestic market.

Comments

“The awarding of the onshore FEED contracts and signing of the sales and purchase agreement with PLN are major accomplishments, which demonstrate progress for the Tangguh Expansion Project. The Train 3 Project will deliver significant value, including much needed energy to Indonesia,” commented Bob Dudley, BP CEO.

The onshore FEED is planned for 12 months, with scope covering the new LNG Train, LNG jetty and associated infrastructure.

Christina Verchere, BP Regional President Asia Pacific, added: “We thank the Indonesian Government for its support and close collaboration to reach these milestones for the Tangguh Expansion Project. We look forward to continued cooperation as we advance towards the final investment decision.”

Further regulatory and partner approvals are required before the final investment decision.

Adapted from press release by Katie Woodward

Read the article online at: https://www.lngindustry.com/liquefaction/22102014/bp-awards-tangguh-lng-expansion-contracts-1645/