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BP launches parallel FEED on Tangguh third LNG Train

BP submitted plan for $12 billion Tangguh expansion

In August 2012, BP and its partners MI Berau B.V., CNOOC Ltd , Nippon Oil Exploration (Berau) Ltd, KG Berau/KG Wiriagar, LNG Japan Corporation and Talisman Energy submitted their plan for the Tangguh LNG expansion project to the Indonesian Authorities.

BP is planning to add a third train of  liquefaction of natural gas (LNG) on its actual Tangguh facilities located in the Berau-Bintuni Bay region of Manokwari District in the Papua province of Indonesia.

In the Tangguh project, BP and its partners share working interests as following:

 – BP 37.16%, is the operator

 – MI Berau B.V (held by Mitsubishi Corporation and INPEX Corporation) 16.30%

 – China National Offshore Oil Corporation (CNOOC) Muturi Limited and CNOOC Wiriagar Overseas Limited 13.90%

 – Nippon Oil Exploration (Berau), Ltd (held by Nippon Oil Exploration Limited and Japan Oil, Gas and Metals National Corporation) 12.23%

 – KG Berau/KG Wiriagar (held by Kanematsu Corporation, Overseas Petroleum Corporation, a subsidiary of Mitsui & Co., Ltd., and Japan Oil, Gas and Metals National Corporation) 10.0%

 – LNG Japan Corporation (equally owned by Sumitomo Corporation and Sojitz Corporation) 7.35%

 – Talisman 3.06%

Tangguh field contains 14.4 trillion cubic feet (tcf) proven reserves of natural gas allowing BP and its partners to two LNG trains of 7.6 million t/y capacity on phase 1.

Awarded in 2003 to the consortium KJP, made of KBR from USA, JGC fom Japan and the local PT PertaFenikki Engineering, the engineering, procurement and construction (EPC) contract was completed in 2007.

BP to save time with FEED-convertible EPC contract

To meet the surging demand for LNG in Asia, BP is now working on the Tangguh LNG expansion in adding a third LNG trains with a capacity of 3.8 million t/y.

Targeting Japan and South Korea, BP expects to export 60% of the production of this third LNG trains while the remaining 40% have already been booked by the local utility company PT Perusahaan Listrik Negara.

With this commitment BP and its partners is able to proceed with the front end engineering and design (FEED) of the 

Tangguh LNG expansion project to cost approximately $12 billion capital expenditure.

In order to save time, BP and its partners are tendering a  front end engineering and design (FEED) contract to be converted into engineering, procurement and construction (EPC) contract for the winner of the  front end engineering and design (FEED)

As the operator, BP is actually qualifying the engineering companies to be invited to bid for this giant project out of which only two companies or consortium will be selected for the  front end engineering and design (FEED)convertible contract offer.

BP and its partners should make the final investment decision (FID) by the mid 2013 in expecting the Tangguh third LNG trains to come on stream in 2019.

On the onshore par, the Tangguh expansion project will include:

 – Third LNG trains

 – LNG storage tanks farm

 – Condensate tanks farm

 –LNG jetty

 – Offsites and utilities

 – Flares

Indonesia regulation regarding the local content shall apply to the TangguhLNG expansion with 35% of the  front end engineering and design (FEED) work and engineering, procurement and construction (EPC) contract are to be allocated to Indonesian companies.

On the offshore part, the Tangguh expansion project should include one or two platforms to gather the recent discoveries of Wiriagar Deep, Roabiba and Ofaweri.

Even if Asia should be short of LNG until 2018, BP and its partners Mitsubishi, Inpex, CNOOC, Nippon Oil, KR Berau and LNG Japan want to secure their regional Market Leadership in front of all the otherLNG projects mushrooming in Australia or North America with a fast track  front end engineering and design (FEED)convertible into engineering, procurement and construction (EPC) contract to be awarded in 2013 for this TangguhLNG expansion project.

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1 Comment to “BP launches parallel FEED on Tangguh third LNG Train”

  1. We are intresting to supply valves and piping equipments to this project, please do not hesitate to contact us Beta International Inc. Jakarta Representative office, Jl Rawa Bambu no. 18 Jakarta 12520, attention Asmi Yakob as a Country Director.

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