Widjajono says half of LNG from Tangguh train 3 for domestic market
Tuesday, November 29 2011 - 07:41 AM WIB
The train 3 LNG plant is being prepared by BP Plc. Currently, BP operates train 1 and 2 of the LNG plant.
?The next phase development of Tangguh project will be accelerated. A portion of the production would be for export market and the rest for domestic market, in particular PLN. The Tangguh LNG project will be further developed given high price of gas. Probably the split will be 50:50 for domestic and export market,? Widjajono told reporters at the energy ministry office.
He noted the gas price for domestic buyers is cheaper than the price of gas for overseas buyers.
BP is currently conducting a detail study to measure additional gas reserves before going ahead with its plan to build a third liquefied natural gas (LNG) train at the Tangguh LNG plant.
The construction of the train could only be started after the company ensured that the gas reserves would be sufficient to supply the planned train and there were certain purchasing contracts with buyers.
The planned train will have a total production capacity of 3.8 million tons per annum.
Tangguh is a massive gas project located at the Bintuni Bay area in West Papua with total proven gas reserves of 14.4 trillion cubic feet.
The Tangguh LNG plant currently consists of two production units, each with capacity of 3.8 million tons of LNG per year. BP started the first production unit, Train 1, in February 2009 and the second, Train 2, in July 2009.
BP is the operator of the Tangguh field, holding a 37.16 percent stake in the project. Other partners are MI Berau B.V. (16.3 percent), China-based CNOOC (13.9 percent), Nippon Oil Exploration (Berau) (12.23 percent), KG Berau/KG Wiriagar (10 percent), LNG Japan Corporation (7.35 percent) and Australia-based Talisman (3.06 percent). (godang)