BP starts selection of Tangguh EPC contractor

Anglo-American energy giant BP Plc. On Wednesday said that it had started selection process of EPC contractor for of its Tangguh liquefied natural gas (LNG) plant.

?We have invited three engineering firms; Kellog, Brown and Root, Chiyoda Corporation and Bechtel Corporation to submit their bids,? said Satya W. Yudha, BP Indonesia?s vice president for government and public affairs on a sideline of Indonesian petroleum Association.

Satya did not say when the tender winner was scheduled to be announced.

In April 2000, BP and state oil and gas firm Pertamina had awarded Front-End Engineering Design (FEED) of Tangguh to a consortium of Chiyoda Corp. and Mitsubishi Corp.

The LNG plant will be located in Berau Bay in the easternmost province of Papua. The plant will be able to produce 6 million tones 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 18.3 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.

BP is trying hard to win 3.5 million tons per year supply bid to China, which would justify the construction of Tangguh LNG plant.

The plant is expected to become onstream in 2005. (alex/godang)