Wednesday, May 29, 2024

BP is offering LNG following first production from Kilang Tangguh Train III project

Reading Time: 2 minutes
Journalist IBP


Mahinda Arkyasa



British Petroleum (BP) is offering LNG to a number of consumers following first production from the Tangguh Train III project in mid-September 2023.

The BP LNG project is located in Bintuni Bay, West Papua Province with a production capacity of 3.8 metric tons per year. Tangguh Refinery is operated 100% by BP Berau Ltd. Meanwhile, BP’s subsidiaries, such as BP Muturi Holdings BV, BP Wiriagar Ltd, and Wiriagar Overseas Ltd, are partners in the development of oil refineries.

Initially, BP appointed two consortia in its construction, including:

  1. PT Tripatra Engineers and Constructors, PT Tripatra Engineering, PT Chiyoda International Indonesia, PT Saipem Indonesia, PT Suluh Ardhi Engineering, and Chiyoda Corporation Consortium;
  1. PT Industrial Engineering, JGC Corporation, PT KBR INDONESIA, PT JGC Indonesia Consortium.

BP will offer the LNG to a number of domestic mineral smelter companies, in addition to looking for buyers from Train I and II such as PLN.

“Opportunities to expand to the domestic market will open up with the emergence of new requests, namely smelters,” said Hudi Suryodipuro, Head of Program and Communication Division of SKK Migas, on August 25, 2023.

BP will also explore at LNG consumers in international markets such as those from Japan and China. So far, BP’s portion of LNG sales is at a balanced level between meeting domestic and export gas needs.

“The composition of distribution to the domestic and export markets is almost 50:50, from Train I and Train II,” he said.

Meanwhile, SKK Migas noted that 35 cargoes were allocated for the export market, most of which were for the East Asian market during the first quarter of 2023.

“The average LNG exports are to China, Taiwan, and South Korea. The scope is the East Asian market. We rarely go to the Middle East because the transportation is quite far. That also includes pipeline gas to Singapore,” said Kurnia Chairi, Deputy for Finance and Commercialization of SKK Migas.

Journalist IBP


Mahinda Arkyasa




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