BP awards onshore FEED contracts for $12bn Tangguh expansion project in Indonesia

BP has awarded the onshore front end engineering and design (FEED) contracts to two consortia for the $12bn Tangguh expansion project (Train 3) in West Papua, Indonesia.

One consortium includes Tripatra Engineers and Constructors, Tripatra Engineering, Chiyoda International Indonesia, Saipem Indonesia, Suluh Ardhi Engineering and Chiyoda Corporation.

The other consortium includes Rekayasa Industri, JGC Corporation, KBR Indonesia and JGC Indonesia.

Train 3 will build on the operations of the two existing liquefaction trains at the Tangguh site, which is situated in Teluk Bintuni Regency in Papua Barat province.

The project will add 3.8 million tonnes per annum (mtpa) of liquefaction capacity to Tangguh, bringing the total capacity to 11.4mtpa.

The onshore FEED contracts, which will run for one year, cover the new LNG Train, LNG jetty and related infrastructure.

BP Group chief executive Bob Dudley said: "The awarding of the onshore FEED contracts and signing of the sales and purchase agreement with PLN are major accomplishments, which demonstrate progress for the Tangguh Expansion Project.

"The Train 3 Project will deliver significant value, including much needed energy to Indonesia."

Indonesia’s state owned electricity firm PLN (Persero) has agreed to buy about 1.5 million tonnes of liquefied natural gas (LNG) per year from 2015 to 2033.

Under the sales and purchase agreement, the companies will initially supply the LNG from Tangguh’s existing two LNG trains.

The deal includes 40% of annual production from Train 3 to the domestic market.

BP Berau operates Tangguh on behalf of the other production sharing contract parties, as contractor to SKK Migas.

BP Berau and its affiliates in Indonesia own a 37.16% stake in the project.