BP Indonesia appointed seller of LNG from Tangguh Train 3

By Godang Sitompul

Upstream authority SKK Migas has appointed BP Plc, the leader of Tangguh consortium, as seller of LNG to be produced from the third train planned to be built at the Tangguh LNG plant in West Papua province.

This was said by SKK Migas? Chairman Amien Sunaryadi.

Amien also said his office is waiting for BP to submit the Final Investment Decision (FID) for the Tangguh Train 3 project.

A source at the Ministry of Energy and Mineral Resources said BP is likely to face obstacles in finalizing the FID for Tangguh Train 3 because until now the Ministry of Finance has yet to approve the Trustee Borrowing Scheme (TBS) proposed by BP for the project.

Earlier, a source said BP has secured offtakers for the LNG production from Train 3. Seventy five percent of the LNG will be bought by state owned electricity firm PT Perusahaan Listrik Negara (PLN) (Persero), 25 percent by Japan?s Kansai Electric Power Company. The Train 3 is designed with the capacity of 3.8 mtpa. It is targeted to start production in 2020.

Editing by Johannes Simbolon