Tangguh LNG expansion project in Indonesia reaches milestone

The Indonesian Government, through the Ministry of Environment, has approved the environmental and social impact assessment for the $12bn BP-led Tangguh LNG expansion project.

The government has also issued an environmental permit for the project, which is located in Teluk Bintuni in the Papua Barat province.

The project is claimed to be the third largest liquefied natural gas supply facility in Indonesia and will feature two identical LNG trains with production capacity of 7.6 million tonnes per annum (Mtpa).

The expansion project would add a third train, increasing total capacity to 11.4Mtpa.

BP and its partners agreed to supply 40% of the LNG output from the third train to Indonesia’s state electricity firm PT PLN (Persero).

BP Berau operates Tangguh as contractor to SKK Migas and owns a 37.16% stake in the project.

Other partners include MI Berau, CNOOC Muturi, Nippon Oil Exploration (Berau), KG Berau-KG Wiriagar, Indonesia Natural Gas Resources Muturi and Talisman Wiriagar Overseas.

BP regional president Asia Pacific Christina Verchere said: "This is a significant milestone for the Tangguh Expansion Project, and I would like to give my highest appreciation to the Ministry of Environment, along with the Papua Barat, Teluk Bintuni and Fakfak administrations for their efforts and cooperation in reaching this achievement.

"We look forward to receiving the remaining approvals from the government to realise the project, which will bring significant benefit to Indonesia."