BP to develop Indonesian regas terminal

A unit of UK-based energy giant BP is joining forces with Indonesian firm AKR Corporindo to develop a regasification terminal in Indonesia’s East Java.

According to statement by AKR, the distributor of petroleum and basic chemicals has entered into a joint development agreement with BP Gas & Power Investments.

AKR’s president Haryanto Adikoesoemo signed the deal with Gareth Jones, director of BP Gas & Power Investments, on December 4 during an online ceremony, AKR said.

Under the deal, the two firms aim to build the regasification terminal in Java Integrated Industrial and Port Estate at Gresik, East Java, Indonesia (JIIPE).

“This project is designed with the aim of providing reliable gas supply for tenants in JIIPE, and with a potential of excess capacity which can be used to supply the indigenous pipelined gas network in East Java,” the firm said.

BP to develop Indonesian regas terminal
Image: AKR Corporindo

AKR said that it expects the LNG import project to come onstream circa 2027 to “coincide with the start-up dates of many major gas consuming projects in JIIPE.”

The firm did not provide any additional information regarding the project.

BP recently shipped the first cargo of LNG produced by the new third liquefaction train at the Tangguh LNG facility in Indonesia.

Moreover, the first cargo of LNG produced by the new train sailed from the Tangguh plant on October 18 to PLN’s regasification facility in Arun, Nanggroe Aceh Darussalam province.

The start-up of Tangguh Train 3 will add 3.8 million tonnes per annum (mtpa) of LNG production capacity to the existing two-train facility, bringing total plant capacity to 11.4 mtpa.

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