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Tangguh LNG project moving ahead with expansion and carbon capture plans
FEED work expected to start in mid-2022 subject to approval by partners and regulator
Michael Marray 8 Sep 2021

Indonesian oil and gas regulator SKK Migas has approved a plan for the next stage of development at the Tangguh LNG project in Teluk Bintuni Regency, Papua Barat Province. The BP project consists of offshore gas production facilities supplying two liquefaction trains with a capacity of 3.8 million tonnes per annum (mtpa) each, which have been in operation since 2009. Construction for a third LNG train is underway.

The new Ubadari field development is being fast-tracked as a result of a successful appraisal programme, and is planned to be produced via normally unmanned installations connected by offshore pipeline to the Tangguh LNG facilities.

The associated Vorwata Carbon Capture Utilization and Storage (CCUS) project will see approximately 25 million tonnes of carbon dioxide injected back into the Vorwata reservoir, to reduce venting of the great majority of produced CO2 and provide incremental gas production through enhanced gas recovery (EGR).

The CO2 injection will remove up to 90% of the reservoir-associated CO2 which is currently vented, and represents nearly half of the Tangguh LNG emissions. This would make Tangguh one of the lowest greenhouse gas (GHG) intensity LNG plants in the world.

Emissions reduction

The new development is estimated to enable a potential additional recovery of 1.3 trillion cubic feet (Tcf) of gas, from both the Ubadari and Vorwata CCUS.

Tangguh is operated by BP Berau on behalf of the other production-sharing contract partners as contractor to SKK Migas. BP Berau and its affiliates in Indonesia hold a 40.22% interest in the project.

Other partners are MI Berau (16.30%), CNOOC Muturi (13.90%), Nippon Oil Exploration (Berau) (12.23%), KG Berau Petroleum (8.56%), KG Wiriagar Overseas (1.44%) and Indonesia Natural Gas Resources Muturi (7.35%).

“These developments demonstrate how Tangguh continues to be a strategic fit in BP’s portfolio," says Dev Sanyal, BP executive vice president for gas & low-carbon energy. "Ubadari is a clear example of a value-focused gas development. And the Vorwata CCUS-EGR project will be a significant milestone for BP, with the potential to make a material contribution to our aims to reduce operational emissions."

Government commitment

The Front-End Engineering and Design (FEED) for the Ubadari field development and Vorwata CCUS will start in mid-2022, subject to Tangguh partners’ and further SKK Migas approval, with a potential estimated project start in 2026 subsequent to a final investment decision.

The project is in line with both BP’s aims and the Indonesian government's effort to meet its Nationally Determined Contribution (NDC) commitment under the Paris Agreement.

BP, as the operator of Tangguh LNG, is a company under production-sharing contract whose operations are supervised by SKK Migas, which represents the government.

Tangguh is currently the largest gas producing field in the country, with 1.4 billion cubic feet (Bcf) per day of gas production through two LNG trains and will reach 2.1 Bcf per day once the third train is online. The Tangguh expansion project, including the construction of Train 3, has been declared by the government as a national strategic project.

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