BP to Invest $12 billion in Tangguh LNG Project

BP has plans to invest $12 billion for the development of the Tangguh liquefied natural gas project in West Papua.

Construction on the 3.8 million tons per year LNG plant will begin next year and is scheduled for completion in 2017, Jakarta Globe said.  The Tangguh refinery currently has two trains producing a total of 7.6 million tons per year. 

BP initially planned to build just the third LNG train in the project but then decided to include the development of the Bintuni Bay area, which is where the $5 billion project is located. 

LNG from Tangguh is delivered to China’s Fujian LNG project, South Korea’s Korea’s K-Power and Posco, and Mexico’s Sempra Energy. BP will also supply 230 million cubic feet of gas per day (mmsfcd) to state utility Perusahaan Listrik Negara beginning next year.