The Jakarta Globe, by Faisal Maliki Baskoro on 02:30 pm Aug 03, 2014
Jakarta. BP’s $12 billion project at the Tangguh liquefied natural gas block in West Papua was pushed forward as Indonesia’s Environment Ministry approved the company’s environmental analysis assessment, paving the way for a boost in production.
The assessment, known as Amdal, is one of the requirements for Tangguh’s stakeholders to move forward with the expansion plan to boost Tangguh’s LNG annual production capacity to 11.4 million metric tons from 7.6 million tons. The company said in a statement issued on Saturday that the government, through the Environment Ministry, approved on July 24 the Tangguh Expansion Project Integrated Amdal environmental and social impact assessment and the project was given an environmental permit.
“This is a significant milestone for the Tangguh Expansion Project, and I would like to give my highest appreciation to the Ministry of Environment, along with the West Papua, Teluk Bintuni and Fakfak Administrations for their efforts and cooperation in reaching this achievement. We look forward to receiving the remaining approvals from the Government to realize the project, which will bring significant benefit to Indonesia,” said Christina Verchere, BP regional president for Asia Pacific.
Tangguh LNG, located in Teluk Bintuni, West Papua province, is the third-largest LNG supply facility in Indonesia and the first fully combined upstream and downstream LNG operation in the country. The current operations is composed of two identical LNG trains (Trains 1 and 2) with annual production capacity at 7.6 million tons. The Tangguh Expansion Project will build on the established operations with a third LNG processing train (Train 3), bringing total project capacity to 11.4 million tons.
Christina said that the $12 billion Tangguh Expansion Project will help meet the growing energy demand in Indonesia. As part of the expansion project, BP and its partners will supply 40 percent of the LNG output from Train 3, which would have annual production capacity at 1.5 million tons, to Indonesia’s state electricity company Perusahhan Listrik Negara for the local market.
The planning, design and procurement of the expansion project must wait further approval from state agencies and ministries, including upstream oil and gas regulator SKKMigas.
“We are engaging closely with SKKMigas, the Ministry of Energy and Mineral Resources and other related government agencies to receive these critical approvals. We remain hopeful that they will be received soon,” Christina said.
Tangguh is operated by BP Berau as contractor to SKKMigas. BP holds a 37.16 percent interest in the project. Other Tangguh contract partners are MI Berau (16.30 percent), CNOOC Muturi (13.90 percent), Nippon Oil Exploration (Berau) (12.23 percent), KG Berau/KG Wiriagar (10.00 percent), Indonesia Natural Gas Resources Muturi (7.35 percent), and Talisman Wiriagar Overseas (3.06 percent)
BP has more than 45 years experience in Indonesia and is one of the largest foreign investors in the country. Activities are dominated by its exploration and production business, particularly Tangguh LNG which began operations in 2009.