BP to build third LNG train in Tangguh: BPMIGAS

London-based BP Plc plans to start building a third liquefied natural gas (LNG) train with a production capacity of 3.8 million tonnes per annum (MTPA) at its Tangguh plant in West Papua next year, The Jakarta Post reported Friday.

Upstream oil, gas regulator BPMIGAS? deputy chairman Hardiono said BP had informed the regulator about the plan. ?They have initiative to start building the third train next year. The train is expected to have a production capacity of 3.8 MTPA and to be on stream by 2014,? Hardiono said.

He refused to give more details of the schedule for the construction, saying that BPMIGAS was still waiting for BP?s formal proposal for the project.

?The process is still quite long as they must submit a plan, including its AFP [Authorization for Expenditure],? Hardiono said.

However, BP Indonesia president William Lin said the company had not made a decision yet. ?We are evaluating options for the further development and expansion of Tangguh. No decisions have been made at this time;? he said in an emailed statement.

Tangguh is a massive gas project located in the Bintuni Bay area in West Papua, where total proven gas reserves amount to some 14.4 trillion cubic feet.

The Tangguh LNG plant consists of two production units, each with a production capacity of 3.8 million tonnes of LNG per year

BP is the operator of the Tangguh field, holding a 37.16 percent stake in the project. Other partners are MI Berau BV (16.3 percent), CNOOC Ltd (13.9 percent), Nippon Oil Exploration (Berau) Ltd (12.23 percent), KG Berau/KG Wiriagar (10 percent), LNG Japan Corporation (7.35 percent) and Talisman (3.06 percent). (*)