Indonesia: FID made on Tangguh third LNG train

Japan’s JX Holdings, energy giant BP and the other partners in Indonesia’s Tangguh LNG project have made a final investment decision to build a third train at the facility.

BP, the operator of the Tangguh LNG project said the third liquefaction train will add 3.8 million tons per annum of production capacity to the existing facility, bringing total plant capacity to 11.4 mtpa. First production from the third train is expected in 2020.

The project also includes two offshore platforms, 13 new production wells, an expanded LNG loading facility, and supporting infrastructure, BP said in its statement.

Indonesian state electric company PT. PLN (Persero) booked 75 percent of the third train’s production capacity while the remaining volumes have been contracted by Kansai Electric Power of Japan.

Awards for the project’s engineering, procurement and construction contracts are expected in the third quarter of 2016 with construction to begin thereafter.

The Tangguh LNG facility is located in Papua Barat Province of Indonesia and consists of offshore gas production facilities supplying two 3.8mtpa liquefaction trains that have been in operation since 2009.

Other partners in the Tangguh production sharing contract are MI Berau (16.30%), CNOOC Muturi (13.90%), Nippon Oil Exploration (Berau) (12.23%), KG Berau Petroleum and KG Wiriagar Petroleum Ltd (10.00%), Indonesia Natural Gas Resources Muturi (7.35%), and Talisman Wiriagar Overseas (3.06%).

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