BP Migas close to announce Tangguh EPC winner

Upstream oil and gas authority BP Migas said it might announce Tangguh LNG plant engineering, procurement, and construction (EPC) winner in the next few days.

?Announcement will be made within the next few days,? said BP Migas senior official Trijana Kartoadmodjo on Wednesday.

Three bidders, namely Kellog Brown Roots, Chiyoda Corp. and Bechtel Corporation had been short listed for Tangguh EPC.

The LNG plant will be located in Berau Bay in the easternmost province of Papua. The plant will be able to produce 7 million tons of LNG per year from two processing train. Once complete, Tangguh will join Arun and Bontang as Indonesia's third LNG center.

The Tangguh gas fields contain 18.4 trillion cubic feet (TCF) of independently certified proved and probable natural gas reserves, with an additional 5.4 TCF of possible reserves already identified.

A two train initial development of the Tangguh LNG plant will involve more than US$ 1.5 billion of investment with additional investment required to develop the gas production facilities.

Tangguh has secured 2.6 million tons per annum LNG contract supply to the Chinese province of Fujian for 25 years, starting 2006-2007, but is looking to find more market for its excess capacity. (godang)