BP and its partners have reached a final investment decision for a $7 billion Tangguh Ubadari carbon capture, utilization and storage (CCUS) project, which has the potential to unlock around 3 trillion cubic feet of additional gas resources in Indonesia to help meet growing energy demand in Asia.
The project, which comprises the Ubadari gas field development, enhanced gas recovery through carbon CCUS and onshore compression, expands and utilizes existing infrastructure at the Tangguh LNG facility in Papua Barat, Indonesia.
Production at the Ubadari field is expected to start in 2028.
The project features Indonesia’s first at-scale enhanced gas recovery through CCUS, aiming to sequester around 15 million tonnes of CO2 in its initial phase and potentially more considering the large CO2 storage capacity of area.
The scheme represents the continued development of Tangguh, following the addition of the third LNG train which began operation in 2023 and brought total plant liquefaction capacity to 11.4 million tonnes per year.
“This project not only unlocks a fantastic gas resource, it also represents an Indonesian first through the use of CCUS to maximize gas recovery. bp has operated in Indonesia for more than 55 years, and the strength of our relationships enables us to bring deep technical experience in helping to deliver this innovative development. We deeply appreciate the continued support of the Government of Indonesia,” said Murray Auchincloss, CEO of BP.
BP is the operator of Tangguh LNG, acting on behalf of Tangguh Production Sharing Contract partners.
BP operates Tangguh with 40.22% participating interest, with partners MI Berau (16.30%) CNOOC Muturi (13.90%), Nippon Oil Exploration (Berau) (12.23%), KG Berau Petroleum
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