FEED contracts let on $12Bn Indonesian project

An aerial view of the Tangguh site. Photo courtesy of BP
An aerial view of the Tangguh site. Photo courtesy of BP

Tangghu Partners, which includes BP, has awarded front end engineering and design (FEED) contracts for the $12Bn Tangghu Expansion project (Train 3) in Indonesia to two consortia.


The first consortia includes PT. Tripatra Engineers and Constructors, PT. Tripatra Engineering, PT. Chiyoda International Indonesia, PT. Saipem Indonesia, PT. Suluh Ardhi Engineering and Chiyoda Corporation Consortium. _The other includes PT. Rekayasa Industri, JGC Corporation, PT. KBR Indonesia and PT. JGC Indonesia Consortium.


The onshore FEED is to be completed in one year, and the scope includes a new LNG Train, LNG jetty and associated infrastructure.


Tangguh LNG is a major multinational project involving the development of six gas fields in the Wiriagar, Berau and Muturi PSCs in Bintuni Bay, Papua Barat.


It is the first fully-vertically integrated LNG operation in Indonesia, producing gas from Papua Barat offshore and delivering LNG to customers around Asia and the US.


Train 3 will build on the safe and reliable operations of the two existing liquefaction trains at the Tangguh site, which is located in Teluk Bintuni Regency in Papua Barat province of Indonesia. The Project is to increase liquiefaction capacity by 3.8 million tonnes per annum (mtpa) bringing total capacity to 11.4 mtpa.


BP and the Tangguh Partners also signed a sales and purchase agreement with Indonesia's state owned electricity company PT. PLN (Persero) to supply up to 1.5 million tons of liquefied natural gas (LNG) each year from 2015 to 2033.


Supply will initially be provided from Tangguh's existing two LNG trains. The agreement commits 40% of annual production from Train 3 to the Indonesian domestic market.


Bob Dudley, BP Group Chief Executive, said: “The awarding of the onshore FEED contracts and signing of the sales and purchase agreement with PLN are major accomplishments, which demonstrate progress for the Tangguh Expansion Project. The Train 3 Project will deliver significant value, including much needed energy to Indonesia.”

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