bp and the Tangguh LNG joint venture partners – Mitsubishi, Inpex, CNOOC, JX Nippon, KG Mitsui and LNG Japan – are looking into the future at Tangguh LNG, beyond Train 3 that we are currently building to expand Tangguh.
In the Tangguh Expansion Phase 2, we are working to deliver an integrated project known as Project UCC comprising Ubadari gas field development, enhanced gas recovery through carbon capture, utilization and storage (EGR/CCUS), and onshore compression. The Government of Indonesia approved Ubadari gas field development and Vorwata EGR/CCUS plan of development in August 2021.
The integrated Project UCC will extend the gas feed to Tangguh’s 3-train LNG operations while at the same time, the EGR/CCUS specifically will significantly reduce Tangguh LNG carbon footprint via CO2 sequestration.
An aerial view of Tangguh LNG plant
As Indonesia’s largest domestic gas producer, bp and the Tangguh LNG joint venture partners support the Government of Indonesia’s target to achieve 12 BSCFD (billion standard cubic feet per day) of gas production by 2030 and at the same time achieve carbon emissions reduction target under the nationally determined contribution (NDC) by 2030.
As Indonesia transitions to low-carbon energy amidst an increased energy demand for the economic growth, natural gas can play a two-fold role in Indonesia’s energy mix. First, it is a lower-carbon alternative; second, it’s a reliable energy source for power generation.
Tangguh LNG EGR/CCUS as part of Tangguh Project is also closely aligned with the Government of Indonesia’s agenda within the G20, where Indonesia – which holds this year’s G20 presidency – has put forward sustainable energy transition as one of its three priority issues for G20 members to embrace and accelerate. It is also in line with bp and the Tangguh LNG joint venture’s aims to decarbonize gas operations.
Project UCC brings business opportunities for national and local companies, local small-scale industries, and job opportunity for local workforce. At the peak of the construction phase, Project UCC will require an estimated 4,000 to 6,000 workers.
Small-scale industries surrounding the Tangguh LNG site will get opportunities as well to supply goods and services via contract and employment. As of 2020, the total supply of community products to Tangguh LNG catering reached 433 metric tonnes or equivalent to IDR 8.8 billion. This may increase when Project UCC is in construction.
Revenue generated from this project will contribute to the state purse to support the development programs for the Government of Indonesia, Papua Barat province, and particularly Teluk Bintuni Regency.
Tangguh LNG EGR/CCUS works by separating the reservoir CO2 from produced gas and reinjecting it back to the Vorwata gas field for sequestration and enhanced gas recovery. The total emissions reduction is up to 25 million tonnes of CO2 equivalent by 2035 while up to 300 BSCF (billion standard cubic feet) of natural gas is produced as additional LNG cargoes for the domestic and international markets.
This would make Tangguh one of the lowest carbon intensity LNG plants in the world.
Project UCC, inclusive of Tangguh LNG EGR/CCUS, is an investment worth US$3 billion in offshore and onshore facilities. The project is expected to enter FEED (front-end engineering design) in 2022, FID (final investment decision) in 2023, with the project coming on stream in 2026/2027.
Tangguh LNG EGR/CCUS itself will have 3 injection wells, 1 offshore injection platform, 1 offshore CO2 pipeline, and onshore facilities for CO2 removal, processing, and compression.
What is CCUS?
Carbon capture, utilization and storage (CCUS) refers to a suite of technologies that can play a critical role in meeting global energy and climate needs. CCUS involves the capture of CO2 from large point sources and transportation by pipeline, ship, rail or truck to be used in a range of applications, such as enhanced gas recovery (EGR), which traps CO2 for permanent storage. CCUS technologies will play an important role in meeting net zero targets, including being one of few solutions to tackle emissions from heavy industry.
Schematic diagram of Vorwata CCUS