Oil giant BP has awarded engineering contracts for the $12billion expansion of its Tangguh Liquefied Natural Gas (LNG) development in Indonesia.
The contracts, which are for the onshore Front End Engineering and Design (FEED) work, have gone to a number of partners including PT Tripatra Engineers and Contractors.
The Tangguh expansion project is expected to include 40% allocation of LNG to the domestic market in Indonesia.
The onshore FEED is planned to take a year. The scope of the work covers the new LNG train, LNG Jetty and associated infrastructure.
Bob Dudley, BP group chief executive, said: “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.”
In addition to the award of the onshore FEED, BP and its Tangguh partners signed a sales and purchase agreement with Indonesia’s state owned electricity company PT.PLN to supply up to 1.5million tons of LNG every year from 2015 to 2033.
The supply will initially be provided from Tangguh’s existing two LNG trains.
BP is one of the largest foreign investors in the country.
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