BP Allocates 40% Gas from Tangguh to Indonesia Market

BP has agreed to allocate 40% of gas production from train 3 of Tangguh, West Papua for domestic consumption, Bisnis Indonesia reported.

The energy giant has agreed to allocate 230 mmscfd of gas from train 1 and 2 for domestic consumption while train 3 will supply 3.8 million ton of gas per year for domestic consumption. The company is now awaiting the approval from BPMigas for front end engineering design (FEED) for train 3 construction. Train 3 is targeted to commence operation in 2018. 

Meanwhile Platts has reported that BP is also in talks to sell LNG from its proposed train 3 with potential customers in Japan and South Korea. The company is focusing on buyers in North Asia, particularly after the Fukushima disaster in Japan last year, BP's Asia Pacific President William Lin said on the sidelines of the Gasex conference in Bali.