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UK-based energy giant BP and its partners in Tangguh LNG just announced a final investment decision on the $7 billion Tangguh UCC project.
The Tangguh Ubadari, CCUS, compression project (UCC) has the potential to unlock around 3 trillion cubic feet of additional gas resources in Indonesia to help meet growing energy demand in Asia.
JGC said in a statement on Monday that its own local subsidiary, JGC Indonesia, was awarded an onshore engineering, procurement, construction and installation (EPCI) Contract for the project by BP Berau, the operator of Tangguh LNG plant
The project is part of an integrated project known as Tangguh LNG EGR/CCUS project comprising of Ubadari field development, enhanced gas recovery through carbon capture, utilization and storage (EGR/CCUS), and also onshore compression, JGC said.
With the award of the onshore EPCI contract for the Tangguh UCC project, JGC will be responsible to install onshore compression facilities at the Tangguh LNG plant.
Moreover, JGC said the purpose of the integrated EGR/CCUS project is to separate the reservoir CO2 from produced gas and reinject it back to the offshore Vorwata gas field for sequestration and enhanced gas recovery.
New units at the onshore LNG facility mainly consist of hydrocarbon compressors (2,350 MMSCFD) to boost natural gas pressure from existing gas wells, EGR compressors (270 MMSCFD) to collect and compress acid gas from existing acid gas removal unit, as well as newly built combined cycle power plant and other required utilities, it said.
Production to start in 2028
The UCC project expands and utilizes existing infrastructure at the Tangguh LNG facility in Papua Barat.
BP said production at the Ubadari field is expected to start in 2028.
Moreover, Tangguh CCUS aims to be the first CCUS project developed at scale in Indonesia, with potential for sequestering around 15 million tonnes of CO2 from Tangguh’s emissions in its initial phase.
The UCC project has been designated as a national strategic project by the government of Indonesia and represents the continued development of Tangguh, following the addition of the third LNG train which began operation in 2023 and brought total plant liquefaction capacity to 11.4 million tonnes per year.
BP said the UCC project includes the extension of the gas feed to Tangguh LNG through the development of the Ubadari field with the potential to reduce Tangguh LNG’s operational emissions via CO2 sequestration.
The government of Indonesia approved the plan of development (POD) for the Tangguh UCC project in August 2021.
BP is the operator of Tangguh LNG, acting on behalf of Tangguh production sharing contract partners.
The energy giant operates Tangguh with 40.22 percent participating interest, with partners MI Berau (16.30 percent) CNOOC Muturi (13.90 perrcent), Nippon Oil Exploration (12.23 percent), KG Berau Petroleum (8.56 percent), KG Wiriagar Petroleum (1.44 percent), and Indonesia Natural Gas Resources Muturi (7.35 percent).