By I MADE SENTANA
JAKARTA -- The Indonesian government has approved a plan to
expand the Tangguh liquefied natural gas project operated by BP, the company
The plan calls for building a third liquefaction train at
Tangguh, located in far eastern West Papua province, at an
estimated cost of $12 billion.
"Approval of the plan is an important step in preparation
for the final investment decision for this expansion, which is currently
expected to be taken in 2014. This would potentially enable
commissioning operations for the new train to begin in late
2018," BP Indonesia said in a statement.
The third train would add liquefaction capacity of 3.8
million tpy to Tangguh, bringing its total capacity to 11.4
million tons, it said.
BP and its partners will sell 40% of the LNG produced with
the third train to Indonesian buyers such as state-owned
electricity company PT Perusahaan Negara, and the rest to
buyers in the Asian-Pacific region.
BP holds a 37.16% stake in the project. Its partners include Cnooc
Ltd. with 13.90%; Nippon Oil Exploration (Berau) Ltd., with
12.23%; and LNG Japan Corp., with 7.35%.
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