BP, on behalf of the Tangguh production sharing contract partners, today announced a final investment decision on the $7 billion Tangguh Ubadari, CCUS, Compression project (UCC), which has the potential to unlock around 3 trillion cubic feet (0.08 trillion m3) of additional gas resources in Indonesia to help meet growing energy demand in Asia.
The announcement was made by Murray Auchincloss, BP’s chief executive officer, during a meeting with Indonesian President H.E. Prabowo Subianto in London. This major investment highlights BP and partners’ strong confidence in Indonesia’s investment climate and strengthening their business activities in the country.
The UCC project, which comprises the Ubadari gas field development, enhanced gas recovery through carbon capture, utilisation and storage (CCUS) and onshore compression, expands and utilizes existing infrastructure at the Tangguh LNG facility in Papua Barat, Indonesia. Production at the Ubadari field is expected to start in 2028.
Auchincloss says: ‘This project not only unlocks a fantastic gas resource, it also represents an Indonesian first through the use of CCUS to maximise gas recovery. BP has operated in Indonesia for more than 55 years, and the strength of our relationships enables us to bring deep technical experience in helping to deliver this innovative development. We deeply appreciate the continued support of the Government of Indonesia and partners and look forward to helping the region meet its growing energy needs.’
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.
