LONDON -- BP, on behalf of the Tangguh Production Sharing Contract partners, announced that the final investment decision (FID) has been approved for the development of the Tangguh Expansion Project in the Papua Barat Province of Indonesia.
The Tangguh Expansion Project will add a third LNG process train (Train 3) and 3.8 mtpa of production capacity to the existing facility, bringing total plant capacity to 11.4 mtpa. The project also includes two offshore platforms, 13 new production wells, an expanded LNG loading facility and supporting infrastructure.
The expansion project will play an important role in supporting Indonesia’s growing energy demand, with 75% of the Train 3 annual LNG production sold to the Indonesian state electricity company PT. PLN (Persero). The remaining volumes are under contract to Kansai Electric Power Company in Japan, the other foundation buyer for Train 3.
The project will also bring a positive contribution to Indonesia and the Papua Barat Province starting in 2016, supporting economic growth and providing 10,000 jobs spread over the project period.
“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,” said Bob Dudley, BP Group CEO.
This FID follows the government of Indonesia’s approval of the Plan of Development II in late 2012. Awards for the project’s key engineering, procurement and construction (EPC) contracts are expected in the third quarter of 2016 with construction to begin thereafter. Operation is expected in 2020.