BP Berau Delays Tangguh Gas Plant Construction to 2016


APRIL 13, 2015

Jakarta. BP Berau, the operator of the Tangguh liquefied natural gas plant in Papua, has delayed construction of Tangguh’s Train 3 liquefaction facility to next year as the company and Indonesia have yet to secure a buyer for the gas.

The $12 billion Train 3 project will boost Tangguh’s gas plant capacity by 3.8 million metric tons of gas per year.

BP Berau has ensured that it will sell as much as 1.5 million metric tons per year of LNG from Train 3 to state electricity provider Perusahaan Listrik Negara and 1 million tons per year to Japan’s second-biggest power firm Kansai Electric Power.

BP Berau is still looking for a buyer for the remaining gas.

“There are some things that indeed must be settled, but we are still targeting FID [final investment decision] to be completed in mid-2016,” said BP country head Dharmawan Samsu on Friday, referring to the timeframe for the project when the company will start ordering construction materials and hiring workers for construction.

Dharmawan said Train 3 will be late by about six to seven months, affecting the facility’s operating schedule, which will be pushed back to 2020 from 2019 initially. The project is now at the front-end engineering design (FEED) stage.