November 22, 2024 [Bp]- Investment is expected to unlock around 3 trillion cubic feet of additional gas resources
Project features Indonesia’s first at-scale enhanced gas recovery through carbon capture, utilization, and storage (CCUS), aiming to sequester around 15 million tonnes of CO2 in its initial phase and potentially more considering the large CO2 storage capacity of area
Another example of bp’s near-term priorities in action: to deliver growth as a simpler, more focused, higher value company
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 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 today. This major investment highlights bp and partners’ strong confidence in Indonesia’s investment climate and strengthening their business activities in the country.
“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 fifty-five 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.”
Murray Auchincloss, bp CEO
The UCC project, which comprises the Ubadari gas field development, enhanced gas recovery through carbon capture, utilization 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.Murray Auchincloss, CEO of bp, said: “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 fifty-five 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.
The UCC project has been designated as a national strategic project by the Government of Indonesia and represents the continued development of Tangguh, following the addition of the third LNG train which began operation in 2023 and brought total plant liquefaction capacity to 11.4 million tonnes per year.
The investment meets bp’s returns hurdle rates and is fully accommodated within bp’s disciplined financial framework, reflecting bp’s drive to focus on value and returns. Tangguh is in a strategic location to access high value regional markets, and the investment reflects bp’s commitment to continue to meet energy demand for Indonesia and the region.
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