Saturday , 1 November 2014
Pipeline Technology
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BP Tangguh signs a 20-year gas sales and purchase agreement with PLN

JAKARTA (Rambu Energy) – BP, the operator of the Tangguh LNG project, on Friday (Oct 17) said that the Tangguh Contractor Parties signed a sales and purchase agreement with state-owned electricity company PT PLN to supply up to 1.5 million tons of liquefied natural gas (LNG) a year for 20 years beginning in early 2015.

BP Indonesia said in a statement that the supply will initially come from Tangguh’s existing two LNG trains, followed by supply from Train 3.

The agreement commits 40 percent of annual LNG production from the Tangguh Train 3 Expansion Project to PLN for the domestic market.

“We thank the Government of Indonesia, including the Ministry of Energy and Mineral Resources and SKK Migas, as well as PLN for their cooperation in reaching this milestone, which will provide significant benefit to Indonesia,” Christina Verchere, BP Regional President Asia Pacific, said.

The Tangguh LNG project is supported by six gas fields in the Wiriagar, Berau, Muturi PSC in Bintuni Bay, West Papua.

In August this year, BP secured an approval from the government for the Tangguh Expansion Project Integrated AMDAL environmental and social impact assessment. The Indonesian government also issued an environmental permit.

The AMDAL includes Tangguh’s environmental and social commitments. It also outlines the role of the local administration and central government. Approval is required for project activities to begin at the Tangguh site.

Tangguh LNG, located in Bintuni bay, West Papua province, is the third largest liquefied natural gas supply facility in Indonesia and the first fully combined upstream and downstream LNG operation in the country.

The current operations comprise two identical LNG trains (Trains 1 and 2) with production capacity of 7.6 million tons per annum (mtpa). Tangguh Expansion Project will build on the established operations with a third LNG processing train (Train 3), bringing total project capacity to 11.4 mtpa.

The US$12 billion Tangguh Expansion Project will deliver “significant value” to the Indonesian government and will help meet the growing energy demand in Indonesia, BP said earlier.

Tangguh is operated by BP Berau Ltd as contractor to SKK Migas. BP holds a 37.16 percent interest in the project. Other Tangguh contract partners are MI Berau B.V. (16.30 percent), CNOOC Muturi Ltd. (13.90 percent), Nippon Oil Exploration (Berau), Ltd. (12.23 percent), KG Berau/KG Wiriagar (10.00 percent), Indonesia Natural Gas Resources Muturi Inc. (7.35 percent), and Talisman Wiriagar Overseas Ltd. (3.06 percent). (editorial@rambuenergy.com)

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