BP Awards FEED Contracts for Tangguh Expansion Project

BP announced Wednesday it has awarded to two consortia with onshore front-end engineering and design (FEED) work for its $12 billlion Tangguh Expansion Project in Indonesia.

The Tangguh gas field lies in the province of West Papua, Indonesia, and contains more than 17 trillion cubic feet of gas.

The Tangguh Expansion Project (also known as Train 3) aims to build on the operations of the two existing liquefaction trains at the Tangguh onshore site. It will add 3.8 million tons per annum of liquefaction capacity to Tangguh, bringing total capacity to 11.4 million tons per annum.

BP said the first group of companies to win FEED work for the project consists of Tripatra Engineers and Constructors, Triparta Engineering, Chiyoda International Indonesia, Saipem Indonesia, Suluh Ardhi Engineering and Chiyoda Corporation Consortium. The second consortium includes Rekayasa Industri, JGC Corporation, KBR Indonesia and JGC Indonesia Consortium.

In addition to the award of the onshore FEED, BP and the Tangguh Partners have signed a sales and purchase agreement with Indonesia's state-owned electricity company 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 percent of annual production from Train 3 to the domestic market.

BP Group Chief Executive Bob Dudley commented during a trip to Jakarta Wednesday:

"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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