The final investment decision (FID) has been approved for the development of the Tangguh LNG expansion project in the Papua Barat province of Indonesia, BP said on behalf of the Tangguh production-sharing contract partners.
The project will add a third LNG process train (Train 3) and 3.8 million tons per annum (mtpa) of production capacity to the existing facility, bringing total plant capacity to 11.4 mtpa, BP said in the release. The project also includes two offshore platforms, 13 new production wells, an expanded LNG loading facility and supporting infrastructure.
BP said 75% of the Train 3 annual LNG production sold to the Indonesian state electricity company PT. PLN (Persero). The remaining volumes are under contract to Kansai Electric Power Company in Japan, the other foundation buyer for Train 3.
In addition, the project will create about 10,000 jobs.
Awards for the project’s key engineering, procurement and construction contracts are expected in third-quarter of 2016 with construction to begin afterward. Operation is expected in 2020, the release said.
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