UK-based energy giant BP has decided to cut the investment in its Tangguh Train 3 expansion due to low oil prices, according to BP Indonesia country head Dharmawan Samsu .
Samsu said the investment, previously set at US$12 billion, has been cut down to between $8 billion and $10 billion, Reuters reports.
A tender for engineering, procurement and construction for the third LNG train is currently being held by BP with the final investment decision on the project expected by mid-year, according to Samsu.
In April, BP signed a deal with the Indonesian power utility Perusahaan Listrik Negara (PLN) to supply 20 LNG cargoes annually from 2017 to 2019. Additionally, from 2020 to 2033, BP will increase the number of cargoes per year to 44.
With the PLNG deal, total production capacity from Tangguh’s third liquefaction train has been booked.
LNG World News Staff