Tangguh LNG Facility : BP announces start-up of third liquefaction train

BP, representing the Tangguh production sharing contract partners, has announced the successful and safe loading and shipping of the first cargo produced by the new third liquefaction train at the Tangguh LNG facility, located in Papua Barat, Indonesia. This shipment is earmarked for Indonesia’s state-owned power generator, PT PLN (Persero), marking a new phase of full-scale commercial operations at the enhanced Tangguh LNG facility.

Tangguh LNG facility – Major Expansion and Its Implications

The introduction of the Tangguh Train 3 has augmented the facility’s LNG production capacity by 3.8 million tonnes per annum (mtpa), consolidating the total output capacity to an impressive 11.4mtpa. Signifying the growth, the first shipment from this train was dispatched from Tangguh on 18 October and is en route to PLN’s regasification center situated in Arun, Nanggroe Aceh Darussalam province.

Chairman of SKK Migas, Dwi Soetjipto, emphasized the facility’s strategic importance stating, “With its expanded production capacity, the Tangguh facility will play a vital role in helping to meet Indonesia’s growing energy demand. Tangguh is anticipated to contribute to over a third of national gas production.”

He added, “As the largest LNG producer in Indonesia, the output from Tangguh’s three-train operation will notably influence the national gas production target of 12 bscf/d by 2030.”

Tangguh LNG Facility expansion in Indonesia boosts capacity to 11.4 million tonnes annually. Photo courtesy of BP p.l.c.

Enhancements and Collaborations for the Expansion

The Tangguh expansion project was not limited to just the third train but extended to the construction of two offshore platforms, 13 fresh production wells, an innovative LNG loading facility, and essential supporting infrastructure. Over 13,500 workers collaborated at the site, contributing more than 155 million work hours to achieve project completion.

Anja-Isabel Dotzenrath, bp’s EVP, gas and low carbon energy, expressed gratitude, “The safe and successful start-up of Train 3 marks a new phase for Tangguh and is a proud day for bp and our Tangguh partners. A hearty thanks to the Government of Indonesia for their unwavering support and partnership.”

She further elaborated on the significance, “Tangguh holds value both to bp and Indonesia. It’s projected to account for over a third of Indonesia’s gas production, supporting the nation’s growing energy requirements. For bp, fortifying our gas and LNG business aligns with our transformation vision towards an integrated energy company.”

In 2023, the Tangguh expansion emerged as bp’s third pivotal project start-up globally, preceded by the Mad Dog II project in the US Gulf of Mexico and the MJ field off India’s east coast.

Having commenced operations in 2009, Tangguh has consistently endeavored to generate positive societal and economic impacts via extensive community development programs. Train 3 further reinforces this commitment, with part of its gas production reserved for electrification in Papua Barat. The project’s long-term vision includes enhancing the representation of Papuans in Tangguh’s workforce from the current 73% to a targeted 85% by 2029.

BP Berau Ltd., the operator and its associated entities in Indonesia, possess a 40.22% stake in Tangguh. The remaining stakes in Tangguh are distributed among various PSC partners: MI Berau B.V. has 16.30%, Nippon Oil Exploration (Berau), Limited owns 12.23%, KG Berau Petroleum Ltd and KG Wiriagar Petroleum Ltd both share 10.00%, Indonesia Natural Gas Resources Muturi Inc. holds 7.35%, and CNOOC Muturi Limited, an exclusive subsidiary of the Company, has a 13.90% interest in the Tangguh project.