BP wins environmental permit from Indonesia to expand Tangguh LNG

BP announced that the Government of Indonesia, through the Ministry of Environment, has approved the Tangguh Expansion Project Integrated AMDAL environmental and social impact assessment and issued the project an environmental permit. 

The AMDAL includes Tangguh’s environmental and social commitments. It also outlines the role of the local administration and central government. Approval is required for project activities to begin at the Tangguh site.

Tangguh LNG, located in Teluk Bintuni, Papua Barat 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 comprise two identical LNG trains (Trains 1 and 2) with production capacity of 7.6 mtpa. 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 mtpa.

The $12 billion Tangguh Expansion Project will deliver significant value to the Indonesian government and will help meet the growing energy demand in Indonesia. As part of the expansion project, BP and its partners will supply 40% of the LNG output from Train 3 (1.5 mtpa) to Indonesia’s state electricity company PT. PLN (Persero) for the Indonesian domestic market.

Other key government approvals that are still in process are required to continue with the planning, design and procurement of the expansion project.

Tangguh is operated by BP Berau Ltd as contractor to SKK Migas. BP holds a 37.16% interest in the project. Other Tangguh contract partners are MI Berau B.V., Cnooc Muturi Ltd., Nippon Oil Exploration (Berau), Ltd., KG Berau/KG Wiriagar, Indonesia Natural Gas Resources Muturi Inc., and Talisman Wiriagar Overseas Ltd.