BP joins hands with Indonesian company for LNG import project in East Java

Collaboration

December 7, 2023, by Aida Čučuk

UK’s BP Gas & Power Investments and Indonesia’s logistics and supply chain company PT AKR Corporindo have signed a joint development agreement to work on an LNG import project involving a regasification terminal in Java Integrated Industrial and Port Estate at Gresik, East Java, Indonesia (JIIPE).

According to PT AKR, the project is designed with the aim of providing a reliable gas supply for tenants in JIIPE, and with a potential of excess capacity which can be used to supply the indigenous pipelined gas network in East Java.

The project is expected to come onstream circa 2027 to coincide with the start-up dates of many gas-consuming projects in JIIPE, PT AKR said.

To note, BP is involved in multiple projects in Indonesia, one of the most recent ones being the Tangguh LNG project in Papua Barat.

In October 2023, BP shipped the first LNG cargo produced by the new liquefaction train at the Tangguh LNG facility, marking the start of full commercial operation of the expanded Tangguh LNG facility.

At the time, Anja-Isabel Dotzenrath, BP’s EVP, Gas and Low Carbon Energy, said: “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.”

BP ships first LNG cargo from expanded Tangguh facility in Indonesia

Indonesia and East Java are witnessing the development of multiple energy and infrastructure projects, the latest being the construction of a new container terminal in Gresik, East Java. Logistics provider DP World and Indonesian conglomerate Maspion Group started the construction of this terminal.

Ahmed bin Sulayem, Group Chairman and CEO, DP World, stated:“We see significant potential in Indonesia as a major hub for global trade, and we hope to unlock further growth in the region through meaningful partnerships and investments that bring opportunities through greater trade connectivity for local businesses and communities.”