BP says investment costs for Train 3 declining

By Febry Silaban

BP Plc, the operator of Tangguh LNG plant in West Papua province, has revised downward the projection of investment costs for Train 3 to between US$8-10 billion from the initial estimate of $12 billion.

?(Investment for) Train 3 has been adjusted to the current market condition. Many projects have been stalled, causing a decline in EPC market. As a result, they (EPC contractors) are adjusting their prices,? BP Indonesia?s Country Head Dharmawan Samsu said in Jakarta on Thursday.

Thanks to investment cost adjustment, the project can now be realized, he said.

?Please note that we do not cut investment. Instead, there is an optimization caused by the decline in market condition. We now project (the investment costs) at $8-10 billon with downward trend. We will try (to build the project) as efficiently as possible,? he said.

Train 3 is designed with a capacity of 3.8 mtpa, which will bring the total capacity of Tangguh LNG plant to 11.4 mtpa.

Editing by Johannes Simbolon