FEED contracts let for Tangguh LNG expansion in Indonesia

The BP PLC-led Tangguh partnership has let front-end engineering and design (FEED) contracts to two consortia for Train 3 of the $12-billion Tangguh LNG expansion project in Teluk Bintuni Regency of Indonesia’s Papua Barat province.

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

The two consortia are:

• PT Tripatra Engineers & Constructors, PT Tripatra Engineering, PT Chiyoda International Indonesia, PT Saipem Indonesia, PT Suluh Ardhi Engineering, and Chiyoda Corp.

• PT Rekayasa Industri, JGC Corp., PT KBR Indonesia, and PT JGC Indonesia.

Train 3 will build on the operations of the two existing liquefaction trains on the Tangguh site. The project will add 3.8 million tonnes/year of liquefaction capacity to Tangguh, bringing total capacity to 11.4 million tpy.

The partnership also agreed to supply as much as 1.5 million tpy of LNG from 2015 to 2033 to Indonesia’s state-owned electricity company PT PLN (Persero). 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.

Further regulatory and partner approvals are required before the final investment decision. The partnership in August received approval from Indonesia on the project’s environmental and social impact assessment (OGJ Online, Aug. 4, 2014).

Tangguh is operated by BP Berau Ltd. on behalf of the other production-sharing contract parties as contractor to SKK Migas.

BP Berau Ltd. and its affiliates in Indonesia hold 37.16% interest in the project. Partners are MI Berau BV 16.3%, CNOOC Muturi Ltd. 13.9%, Nippon Oil Exploration (Berau) Ltd. 12.23%, KG Berau Petroleum Ltd. and KG Wiriagar Petroleum Ltd. 10%, Indonesia Natural Gas Resources Muturi Inc. 7.35%, and Talisman Wiriagar Overseas Ltd. 3.06%.