Saipem partners with PT Meindo Elang Indah for major Tangguh UCC project

Saipem, in collaboration with PT Meindo Elang Indah, has been awarded a $1.2 billion offshore Engineering, Procurement, Construction, and Installation (EPCI) contract by BP Berau Ltd. The deal, which allocates approximately $1 billion to Saipem’s share, is part of the ambitious Tangguh Ubadari, Carbon Capture, Utilization, and Storage (CCUS), and Compression (UCC) project in Papua Barat Province, Indonesia.

This strategic project focuses on enhancing natural gas production from the Ubadari offshore field while incorporating advanced carbon capture technologies. Gas extracted from the Ubadari field will be transported to an onshore liquefied natural gas (LNG) facility, where a carbon dioxide (CO₂) separation process will ensure the removal of greenhouse gases. The captured CO₂ will then be re-injected into the reservoir through an offshore platform to extract additional natural gas resources efficiently.

Revolutionizing energy with cutting-edge infrastructure

The Tangguh UCC project will see Saipem engineering, procuring, constructing, and installing two wellhead production platforms and a dedicated CO₂ re-injection wellhead platform. The scope of work also includes laying 90 kilometers of pipelines to support gas transportation and injection operations.

In line with its commitment to local economic development, Saipem plans to fabricate these platforms at its Karimun yard, one of the largest such facilities in Southeast Asia. This sprawling site, with over 5,000 workers and a total area of 1.4 million square meters, has been instrumental in many of Saipem’s global projects. The local fabrication not only streamlines production timelines but also underscores Saipem’s focus on fostering regional employment and skill development.

A milestone in carbon capture and sustainability

The integration of carbon capture, utilization, and storage technology into the Tangguh UCC project sets a benchmark for environmentally responsible energy production. By sequestering millions of tonnes of CO₂ during the project’s operational phase, the initiative aligns with global goals to mitigate climate change while optimizing resource extraction. Experts in the energy sector view this project as a template for balancing economic and environmental objectives in large-scale developments.

Energy analysts have highlighted that the deployment of such advanced technology demonstrates BP Berau Ltd.’s confidence in Indonesia’s regulatory environment and its commitment to sustainable practices. The success of the Tangguh UCC project is anticipated to position Indonesia as a regional leader in innovative natural gas extraction and carbon management technologies.

Strategic importance for Indonesia’s energy future

With an estimated potential to unlock over 3 trillion cubic feet of additional gas reserves, the Tangguh UCC project is expected to contribute significantly to meeting Indonesia’s growing energy demands. The Ubadari field is projected to commence production in 2028, strengthening the country’s energy independence while meeting international LNG supply commitments.

The partnership between Saipem, PT Meindo Elang Indah, and BP Berau Ltd. reflects a shared vision for sustainable and technologically advanced energy projects. This collaboration is poised to bolster Indonesia’s economic growth and pave the way for further investments in the country’s energy infrastructure.

Key takeaways for global energy stakeholders

This landmark contract reaffirms Saipem’s position as a leader in the natural gas and CO₂ storage sectors, showcasing its ability to deliver complex projects with precision and sustainability. By leveraging its world-class engineering capabilities and local expertise, the company continues to make significant strides in driving energy innovation on a global scale.

The Tangguh UCC project’s success will likely serve as a case study for other nations seeking to develop their energy sectors while adhering to stringent environmental standards. Saipem’s role in this transformative initiative highlights the critical importance of collaboration between global companies and local partners in achieving sustainable development.