Tangguh Train III project gets buyers
Tuesday, June 14 2016 - 01:07 AM WIB
Japan?s Kansai Electric Power Company and Indonesia?s state-owned electricity firm PT PLN have been named as buyers for output from the planned expansion of the Tangguh LNG plant in West Papua, known as Tangguh Train 3 project, according to a source.
The source told petromindo.com Monday that the Tangguh Train 3, which hill have production capacity of 3.8 million tons per year (mtpa), is targeted to start production in 2020. As much 25 percent of the output will be delivered to Kansai Electricity, and 75 percent to PLN.
He confirmed an earlier report in this portal that BP Indonesia, the operator of the Tangguh LNG plant, is scheduled to submit the final investment decision (FID) at the end of this month. ?BP Indonesia plans to submit the FID to SKK Migas at the end of June,? the source said.
The source added that the EPC schedule will be announced by BP Indonesia after it submits the FID.
BP Indonesia?s Country Head Dharmawan Samsu said last month that the company has revised downward the projection of investment costs for Train 3 to between US$8-10 billion from the initial estimate of $12 billion.
The Train 3 will bring the total capacity of Tangguh LNG plant to 11.4 mtpa.
BP Indonesia holds a 37.16 percent stake in the Tangguh LNG plant. Its partners include MI Berau BV (16.3%), CNOOC Ltd (13.9%), Nippon Oil Exploration (Berau), Ltd. (12.23%), KG Berau/KG Wiriagar (10%), LNG Japan Corporation (7.35% ), and Repsol-Talisman (3.06%).
Editing by Reiner Simanjuntak