Indonesia's Expanded Tangguh LNG Facility Begins Full Commercial Operations

BP, on behalf of the Tangguh production sharing contract partners in Indonesia, said Thursday that the first cargo of liquefied natural gas (LNG) produced by the new third liquefaction train at the Tangguh LNG facility, in Papua Barat, Indonesia, has been loaded and sailed, to be delivered to Indonesia’s state-owned power generator PT PLN (Persero). 

This marks the start of full commercial operation of the expanded Tangguh LNG facility.

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 11.4mtpa. The first cargo of LNG produced by the new train sailed from Tangguh on October 18 to be delivered to PLN’s regasification facility in Arun, Nanggroe Aceh Darussalam province, Indonesia.

Dwi Soetjipto, chairman of SKK Migas, Indonesia’s oil and gas regulatory agency, said: “With its expanded production capacity, the Tangguh facility will play a vital role in helping to meet Indonesia’s growing energy demand, total gas production at Tangguh is expected to account for over a third of national gas production.

“Tangguh is the largest LNG producer in Indonesia and the production from Tangguh's three-train operation will significantly contribute to the national gas production target of 12 bscf/d by 2030.”

In addition to the new train, the Tangguh expansion project included construction of two offshore platforms, 13 new production wells, an LNG loading facility, and supporting infrastructure. At its peak, more than 13,500 workers were involved in the project’s development at the remote site, with a total of more than 155 million work hours spent to complete the project.

Anja-Isabel Dotzenrath, BP’s EVP, gas and low-carbon energy said: “The safe and successful start-up of Train 3 marks a new phase for Tangguh and is a proud day for bp and our Tangguh partners. I would like to thank the Government of Indonesia for our strong partnership and their continued support that has made this possible.“

"Tangguh is important both to bp and to Indonesia. It is expected to account for more than a third of the country’s gas production and make a significant contribution to meeting the country’s growing needs for reliable and affordable energy. For bp, building our gas and LNG business is central to our strategy as we transform to an integrated energy company, investing in today’s hydrocarbon energy system as well as growing new lower carbon businesses.”

The Tangguh expansion is the third major project start-up for bp globally in 2023, following the start of production from the Mad Dog II project in the US Gulf of Mexico and from the MJ field off the east coast of India.

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