Indonesia’s Tangguh UCC project reaches FID

Indonesia’s Tangguh UCC project reaches FID. (Image: Mitsubishi Corp.)

bp and its partners in the Tangguh LNG project in Indonesia have reached a final investment decision (FID) on the Tangguh Ubadari, CCUS project valued at US$7 billion.

Indonesia Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) signed agreements with a number of international banks, Indonesian banks and financial institution for the financing.

The project aims to unlock an additional three trillion cubic feet of natural gas in production volume to play a vital role in the stable energy supply to Asian countries including Japan in the energy transition era. The project features Indonesia’s first at-scale enhanced gas recovery through carbon capture, utilization, and storage (CCUS), aiming to sequester around 15 million tonnes of CO2 in its initial phase and potentially more considering the large CO2 storage capacity of area

The project consists of the development of the Ubadari Gas Field, enhanced gas recovery (EGR) through carbon capture, utilization, and storage (CCUS)1, and onshore compressors. The project is expected to begin operation and production in stages from 2028. The project features Indonesia’s first at-scale EGR through CCUS, which will contribute to the deployment of CCUS technology in the country.

“This project not only unlocks a fantastic gas resource, it also represents an Indonesian first through the use of CCUS to maximise gas recovery,” said Murray Auchincloss, CEO of bp. “bp has operated in Indonesia for more than 55 years, and the strength of our relationships enables us to bring deep technical experience in helping to deliver this innovative development. We deeply appreciate the continued support of the Government of Indonesia and partners and look forward to helping the region meet its growing energy needs.”

Tangguh LNG, which currently has an annual LNG production capacity of 11.4 million tons, is located in Bintuni Bay in Indonesia’s Papua Barat Province. The project is operated by a consortium led by bp under a production-sharing contract with SKK Migas, Indonesia’s upstream oil and gas regulator.