BP reaches FID on $7-billion Indonesian CCUS project

JAKARTA, November 22, 2024 – BP has reached an FID on the USD 7-billion Tangguh Ubadari gas development, CCUS and compression project (Tangguh UCC) in Papua Barat, Indonesia, the UK supermajor announced on Thursday.

The project will extend the gas feed to the Tangguh LNG facility through the development of the Ubadari field and reduce Tangguh LNG’s carbon dioxide emissions through sequestration. Once completed, the CCUS system will have three injection wells, one offshore injection platform, one offshore carbon dioxide pipeline and onshore facilities for carbon dioxide removal, processing and compression.

With the potential to sequester around 15 million tonnes of carbon dioxide in an initial stage, Tangguh CCUS aims to be the first CCUS project developed at scale in Indonesia. The project opens a new phase of development at Tangguh, following the addition of a third LNG train which began operation in 2023 and brought total liquefaction capacity to 11.4 million tonnes per year.

“This project not only unlocks a fantastic gas resource, it also represents an Indonesian first through the use of CCUS to maximise gas recovery. BP has operated in Indonesia for more than fifty-five years, and the strength of our relationships enables us to bring deep technical experience in helping to deliver this innovative development,” said Murray Auchincloss, CEO of BP.

BP operates the Tangguh LNG facility with a 40.22% interest. Its partners in the project are MI Berau (16.30%) CNOOC Muturi (13.90%), Nippon Oil Exploration (Berau) (12.23%), KG Berau Petroleum (8.56%), KG Wiriagar Petroleum (1.44%) and Indonesia Natural Gas Resources Muturi (7.35%).

Photo of Tangguh LNG facility courtesy of BP

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