BP hopes FID for Tangguh Train 3 in 2015

BP Indonesia, the operator of the Tangguh LNG plant in Papua, expects to be able to complete the final investment decision (FID) for the Train 3 facility in 2015, with the outlook that construction of the new LNG train could be completed in 2019 as scheduled.

BP Indonesia Head of Country Dharmawan Samsu, told lawmakers during a hearing with the House of Representatives on Monday, that in order for the project to be completed on time, the necessary permits be issued this year.

He said that approval for the necessary AMDAL environmental permit, for example, is expected in April or May of this year. He added that BP Berau is also currently in negotiation with state-owned electricity firm PLN over the sales of LNG as 40 percent of the output from Train 3 must be sold at home.

?We expect approvals (of the necessary permits) can be made this year so that Tangguh can achieve the final investment decision in 2015 in the hope that the Train 3 facility can be completed in 2019,? Darmawan said as quoted by a press statement issued by the Directorate General of Oil and Gas Tuesday.

He added that a delay in the completion of the project will cause difficulties in selling the output amid competition from Australia and other countries which are also rushing to complete their new LNG plants.

The Tangguh Train 3 facility is designed to have a capacity of 3.8 million tons per annum.

BP Indonesia holds a 37.16 percent stake in the Tangguh LNG plant. Its partners include MI Berau BV (16.3%), CNOOC Ltd (13.9%), Nippon Oil Exploration (Berau), Ltd. (12.23%), KG Berau/KG Wiriagar (10%), LNG Japan Corporation (7.35% ), and Talisman (3.06%).

Editing by Reiner Simanjuntak