BP, partners take FID on $7 billion Tangguh UCC project

UK-based energy giant BP and its partners in Tangguh LNG have taken a final investment decision on the $7 billion Tangguh UCC project in Papua Barat, Indonesia.

BP said in a statement on Thursday the Tangguh Ubadari, CCUS, compression project (UCC) has the potential to unlock around 3 trillion cubic feet of additional gas resources in Indonesia to help meet growing energy demand in Asia.

BP’s CEO Murray Auchincloss made the announcement during a meeting with Indonesian President Prabowo Subianto in London.

“This project not only unlocks a fantastic gas resource, it also represents an Indonesian first through the use of CCUS to maximize gas recovery,” Auchincloss said.

Production to start in 2028

According to BP, the UCC project, which comprises the Ubadari gas field development, enhanced gas recovery through carbon capture, utilization and storage (CCUS) and onshore compression, expands and utilizes existing infrastructure at the Tangguh LNG facility in Papua Barat.

Production at the Ubadari field is expected to start in 2028.

Moreover, Tangguh CCUS aims to be the first CCUS project developed at scale in Indonesia, with potential for sequestering around 15 million tonnes of CO2 from Tangguh’s emissions in its initial phase.

The UCC project has been designated as a national strategic project by the government of Indonesia and represents the continued development of Tangguh, following the addition of the third LNG train which began operation in 2023 and brought total plant liquefaction capacity to 11.4 million tonnes per year.

BP said the UCC project includes the extension of the gas feed to Tangguh LNG through the development of the Ubadari field with the potential to reduce Tangguh LNG’s operational emissions via CO2 sequestration.

Once completed, Tangguh EGR/CCUS itself will have three injection wells, one offshore injection platform, one offshore CO2 pipeline, and onshore facilities for CO2 removal, processing, and compression.

The government of Indonesia approved the plan of development (POD) for the Tangguh UCC project in August 2021.

BP is the operator of Tangguh LNG, acting on behalf of Tangguh production sharing contract partners.

The energy giant operates Tangguh with 40.22 percent participating interest, with partners MI Berau (16.30 percent) CNOOC Muturi (13.90 perrcent), Nippon Oil Exploration (12.23 percent), KG Berau Petroleum (8.56 percent), KG Wiriagar Petroleum (1.44 percent), and Indonesia Natural Gas Resources Muturi (7.35 percent).

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