Following the announcement of the final investment decision (FID) of BP’s Tangguh CCUS project, the company has signed onshore and offshore Engineering, Procurement, Construction, and Installation (EPCI) contracts with two contractors worth US$3.6 billion. They are Saipem in a consortium with partner PT Meindo Elang Indah and JGC Holdings Corporation through its local subsidiary PT JGC Indonesia.
The contract was signed on November 26, 2024, by BP’s VP of Procurement James Tehubijuluw, Paolo Evangelista from Saipem, Vincent Chan from Meindo, and Suryadi from JGC Indonesia. Witnessing the signing of the contract were Djoko Siswanto, the new Head of SKK MIGAS, and Kathy Wu, BP regional president of Asia Pacific, Gas & Low Carbon Energy.
Djoko Siswanto said that as a National Strategic Project, the Tangguh project has an important role in supporting the Government of Indonesia in meeting the ever-increasing energy needs, achieving national gas production targets, and advancing decarbonization efforts to achieve national emission reduction goals.
Kathy Wu, BP’s regional president of Asia Pacific, Gas & Low Carbon Energy, said that the Tangguh Project has the potential to generate an additional 3 trillion cubic feet of gas resources to meet the increasing energy needs of Indonesia and Asia while supporting Indonesia’s decarbonization efforts through the reinjection of around 15 million tons of CO2 in the initial phase.
About the Tangguh CCUS Project
The Tangguh CCUS project consists of developing the Ubadari gas field, enhancing gas recovery through carbon capture, utilization, and storage (CCUS), and onshore compression.
Production at the Ubadari field is expected to start in 2028. This will mark the start of the next phase of Tangguh LNG development, which will add 3 trillion cubic feet of natural gas.
The project supports Indonesia’s decarbonization agenda by re-injecting around 15 million tons of CO₂ into reservoirs as Indonesia’s first large-scale CCUS application.
Source: SKK Migas and BP
