Tangguh LNG is the third LNG hub in Indonesia. In March 2005 the Government of Indonesia gave the go ahead for the Tangguh LNG project in Bintuni Bay of West Papua.
Taking its name from the Indonesia word for "resilient and strong", Tangguh is centered on the Bintuni Bay area of Papua, Indonesia - around seven hours flight from Jakarta. With 37.16% interest in the project, BP Indonesia is the operator of Tangguh under a production sharing contract with BPMIGAS (Indonesia's regulatory body for oil and gas upstream activities).
In October 2007 the project completed its planned loan agreement totaling US$3.5 billion with several international banks to finance the development of the LNG plant. The external financing highlights investors' confidence in the project.
The Project involves the tapping of six fields to extract combined proven reserves of around 14.4 trillion cubic feet of clean gas. Two normally unmanned offshore production platforms located in Bintuni Bay will collect gas from the reservoir, then send it through sub-sea pipelines to an LNG processing facility on the south shore. From here, LNG will go to energy markets using LNG tankers.
The LNG processing plant will initially consist of two ‘trains’ (the units that purify and liquefy gas), producing at least 7.6 million metric tons of LNG a year. Other facilities at the site includes storage tanks, an LNG tanker loading terminal, as well as maintenance facilities, offices and a personnel accommodation complex.