Tangguh loads LNG cargo to domestic market

bp today announced it is loading the first cargo of LNG from its operated Tangguh LNG plant for delivery to the Floating Storage and Regasification Unit (FSRU) in West Java operated by PT. Nusantara Regas.

"This first Tangguh cargo for West Java is a significant achievement and further shows our determination to fulfilling our commitment to the Government of Indonesia regarding domestic energy demand. We are hopeful of soon concluding further arrangements to support this for the long term," William Lin, BP Regional President Asia Pacific.

This landmark delivery to West Java follows the conclusion earlier in 2013 of the arrangement for Tangguh to supply LNG cargoes to fertilizer company PT. Pupuk Iskandar Muda (PIM) through a Cargo Substitution Arrangement with Arun Contractors and PT. Pertamina (Persero). Five Tangguh cargoes have been delivered to PIM this year through substitution.

Through the development of the Tangguh Expansion project, Tangguh's role as a significant energy source for Indonesia will grow further, with bp and its partners having committed to supply 40% of Tangguh Train 3 LNG,up to 24 cargoes per year, to PLN for the domestic market. bp, its Partners and the Government of Indonesia continue to work together to progress Train 3, targeting operations in 2019.

Note to editors:

• Tangguh has agreed to supply 4MW of power to state electricity company PT. PLN (Persero) to sell and distribute to the residential communities of the Teluk Bintuni Regency, Papua Barat. Up to a further 4MW of power may be supplied at the Tangguh plant to PLN to further electrify residential communities in the following years. Tangguh completed the installation of electricity infrastructure and equipment interface at the beginning of 2013. We are now ready to supply the first phase of 4MW electricity from Tangguh LNG Plant but supply is waiting-on the completion of PLN’s receiving and distribution system. In the meantime, further technical evaluation is being performed to prepare for the second phase of the project that may provide and supply further 4MW electricity to PLN in the future.
• At the start of Train 3, up to 15 mmscfd of gas supply sufficient to generate up to 50 MW of local power will be allocated for sale from Train 3 at the Tangguh Plant. The power generated from this gas can supply and enable local infrastructure as well as commercial business and stimulate light industrial development, particularly in the North Shore villages of Teluk Bintuni Regency and beyond.
• Tangguh is operated by bp Indonesia as contractor to Indonesia's oil and gas regulatory body SKK Migas. bp holds a 37.16% interest in the project. Other Tangguh contract partners are MI Berau B.V. (16.30%), CNOOC Ltd. (13.90%), Nippon Oil Exploration (Berau), Ltd. (12.23%), KG Berau/KG Wiriagar (10.00%), LNG Japan Corporation (7.35%), and Talisman (3.06%)

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