BP gets key approval for $12-billion Tangguh LNG expansion

Aug. 4, 2014

Indonesia’s Ministry of Environment has approved the environmental and social impact assessment, known as AMDAL, for the BP PLC-led Tangguh LNG expansion project in Teluk Bintuni, Papua Barat province, and an environmental permit has been issued.

OGJ editors

The AMDAL includes Tangguh’s environmental and social commitments and outlines the role of the local administration and central government. Approval is required for project activities to begin at the Tangguh site.

The expansion project, expected to cost $12 billion, would add a third train, boosting total project capacity to 11.4 million tpy. Current operations consist of two identical LNG trains with combined production capacity of 7.6 million tpy.

BP and its partners have pledged to supply 40% of the LNG output from Train 3, 1.5 million tpy, to Indonesia’s state electricity company PT PLN (Persero) for the Indonesian domestic market.

BP says other key government approvals still in progress are required to continue with the planning, design, and procurement of the expansion project. The company received approval for expansion plans from Indonesia’s Ministry of Energy and Mineral Resources in 2012 (OGJ Online, Nov. 5, 2012).

“We are engaging closely with SKK Migas, the Ministry of Energy and Mineral Resources and other related government agencies to receive these critical approvals. We remain hopeful that they will be received soon,” said Christina Verchere, BP regional president for Asia-Pacific.

Tangguh LNG, which started production in 2009, contributes to the development of six gas fields in the Wiriagar, Berau, and Muturi production-sharing contracts in Bintuni Bay, Papua Barat (OGJ Online, July 7, 2009).

Tangguh is operated by BP Berau Ltd. as contractor to SKK Migas. BP holds 37.16% interest in the project, with partners MI Berau BV 16.3%; CNOOC Muturi Ltd. 13.9%; Nippon Oil Exploration (Berau) Ltd. 12.23%; KG Berau-KG Wiriagar 10%; Indonesia Natural Gas Resources Muturi Inc. 7.35%; and Talisman Wiriagar Overseas Ltd. 3.06%.