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BP awards FEED contracts for third train of Tungguh LNG project in Indonesia

22nd October 2014

On behalf of the Tangguh Partners, BP has announced that two consortia have been awarded the onshore Front End Engineering and Design (FEED) for the USD 12bn Tangguh Expansion Project (Train 3)

The onshore FEED is planned for 12 months, with scope covering the new LNG Train, LNG jetty and associated infrastructure

The first consortium is comprised of PT. Tripatra Engineers and Constructors, PT. Tripatra Engineering, PT. Chiyoda International Indonesia, PT. Saipem Indonesia, PT. Suluh Ardhi Engineering and Chiyoda Corporation Consortium.

The second comprises PT. Rekayasa Industri, JGC Corporation, PT. KBR Indonesia and PT. JGC Indonesia Consortium.

“The awarding of the onshore FEED contracts and signing of the sales and purchase agreement with PLN are major accomplishments, which demonstrate progress for the Tangguh Expansion Project. The Train 3 Project will deliver significant value, including much needed energy to Indonesia,” said Bob Dudley, BP group chief executive while visiting Jakarta.

The onshore FEED is planned for 12 months, with scope covering the new LNG Train, LNG jetty and associated infrastructure.

Christina Verchere, BP regional president Asia Pacific, said: “We thank the Indonesian Government for its support and close collaboration to reach these milestones for the Tangguh Expansion Project. We look forward to continued cooperation as we advance towards the final investment decision.”

Train 3 will build on the safe and reliable operations of the two existing liquefaction trains at the Tangguh site, which is located in Teluk Bintuni Regency in Papua Barat province of Indonesia. The Project will add 3.8 million tonnes per annum (mtpa) liquefaction capacity to Tangguh, bringing total capacity to 11.4 mtpa.

In addition to the award of the onshore FEED, BP and the Tangguh Partners signed a sales and purchase agreement with Indonesia’s state owned electricity company PT. PLN (Persero) to supply up to 1.5 million tons of liquefied natural gas (LNG) each year from 2015 to 2033.  Supply will initially be provided from Tangguh’s existing two LNG trains. The agreement commits 40 per cent of annual production from Train 3 to the domestic market.

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