Published: October 24, 2023 |

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bp, on behalf of the Tangguh production sharing contract partners, said the first cargo of liquefied natural gas (LNG) produced by the new third liquefaction train at the Tangguh LNG facility, in Papua Barat, Indonesia, has safely been loaded and sailed. It will be delivered to Indonesia’s state-owned power generator PT PLN (Persero). This marks the start of full commercial operation of the expanded Tangguh LNG facility.

The start-up of Tangguh Train 3 will add 3.8 million tonnes per annum (mtpa) of LNG production capacity to the existing two-train facility, bringing total plant capacity to 11.4mtpa. The first cargo of LNG produced by the new train sailed from Tangguh on October 18 to be delivered to PLN’s regasification facility in Arun, Nanggroe Aceh Darussalam province, Indonesia.

“With its expanded production capacity, the Tangguh facility will play a vital role in helping to meet Indonesia’s growing energy demand, total gas production at Tangguh is expected to account for over a third of national gas production,” said Dwi Soetjipto, chairman of SKK Migas, Indonesia’s oil and gas regulatory agency.

“Tangguh is the largest LNG producer in Indonesia and the production from Tangguh’s three-train operation will significantly contribute to the national gas production target of 12 bscf/d by 2030,” added Soetjipto.

In addition to the new train, the Tangguh expansion project included construction of two offshore platforms, 13 new production wells, an LNG loading facility, and supporting infrastructure. At its peak, more than 13,500 workers were involved in the project’s development at the remote site, with a total of more than 155 million work hours spent to complete the project.

“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. I would like to thank the Government of Indonesia for our strong partnership and their continued support that has made this possible,” said Anja-Isabel Dotzenrath, bp’s EVP, gas and low carbon energy.

“Tangguh is important both to bp and to Indonesia. It is expected to account for more than a third of the country’s gas production and make a significant contribution to meeting the country’s growing needs for reliable and affordable energy. For bp, building our gas and LNG business is central to our strategy as we transform to an integrated energy company, investing in today’s hydrocarbon energy system as well as growing new lower carbon businesses,” added Dotzenrath.

The Tangguh expansion is the third major project start-up for bp globally in 2023, following start of production from the Mad Dog II project in the U.S. Gulf of Mexico and from the MJ field off the east coast of India.

Since beginning operations in 2009, Tangguh has worked to create positive social and economic impacts through comprehensive community development programs. Train 3 will further enhance this, with a portion of the gas committed for electrification in Papua Barat, and the project aims to continue to increase the proportion of Papuans in Tangguh’s workforce from 73 percent today to meet its commitment of 85 percent by 2029.

Tangguh LNG is located in Teluk Bintuni Regency in the Papua Barat Province of Indonesia. It has been operation since 2009 and now consists of offshore gas production facilities supplying three 3.8mtpa liquefaction trains. The Tangguh expansion project involved 17,500 tonnes of structural steel (more than the weight of two Eiffel Towers) and used 70,000 cubic meters of concrete (equivalent to the volume of 28 Olympic-sized swimming pools). With Train 3 completed and operational, the Tangguh partners are making progress towards next planned phase of development at Tangguh — the UCC project that includes the adoption of carbon capture utilization and storage (CCUS) technology to help reduce CO2 emissions.

bp is an energy company that explores and produces oil and natural gas, refines, markets, and supplies petroleum products, as well as generates solar energy, and manufactures and markets chemicals such as terephthalic acid, acetic acid, acrylonitrile, ethylene, and polyethylene. BP serves customers worldwide.

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