BPMIGAS suggests sharing of facilities in Tangguh train 3 project

By Godang Sitompul

Upstream authority BPMIGAS has suggested that the planned development of the train 3 LNG plant at the Tangguh LNG compound in West Papua does not require that all the facilities be constructed anew as it can use some of the facilities in train 1 and train 2 under a cost sharing mechanism.

BPMIGAS also noted that revenue sharing from the production of train 1 and train 2 will start next year. ?For now, the important thing is that because there are already train 1 and train 2, and next year the revenue split will start running, they (the revenue streams) must be separated. We see that the existing facilities at train 1 and train 2 can also be used in train 3. Therefore, we must calculate the cost sharing, and reassess the (project),? BPMIGAS Chairman R. Priyono told Petromindo.com Monday

Priyono requested that there be joint facilities used in the train 3 project. ?There?s no need to have a new jetty, there?s no need to build new vessels. The existing facilities can be shared with train 3,? he said.

Priyono acknowledged that BP, the leader in the consortium developing Tangguh, is planning to develop up to a total of 8 trains. ?This means that the reserves there (in Tangguh) is very huge. The reserves is at least 26-28 MTPA. But it has yet to be certified,? he said.

Meanwhile, regarding the suggestion for BP to team up with Genting Oil Kasuri Pte Ltd, Priyono said that it has yet to be decided. ?Probably, Genting will go on its own, but it can also use the facilities at Tangguh as long as it is mutually beneficial for both of them.? Genting is the operator of the Kasuri Block in West Papua.

Editing by Reiner Simanjuntak