BP's Tangguh Project to Start Mid-Year
BP Indonesia will start developing the infrastructure for the Tangguh liquefied natural gas project in Papua province in July of this year. Satya W. Yudha, BP Indonesia vice president for government relations and public affairs, said the company will begin construction following completion of its environmental impact assessment this month. "We will develop well production, pipelines and the LNG plant starting from July and expect to complete construction in 2005."
Spending for the project is expected to run into the millions, however, he would not quote exact figures. BP is competing with LNG producers from Australia and Qatar to win the contract to supply LNG to Guangdong province in China. The Guangdong LNG supply contract offers potential sales totaling 3 million tons of LNG annually, beginning in 2005. BP would start construction work even if China hasn't announced the results of the LNG contract tender.