Image courtesy of BP.

BP awarded front end engineering and design (FEED) contracts to two Indonesian groups Wednesday for work on the $12 billion Tangguh LNG expansion project in Indonesia.

The first consortium is made up of Tripatra Engineers and Constructors, Tripatra Engineering, Chiyoda International Indonesia, Saipem Indonesia, Suluh Ardhi Engineering and Chiyoda Corporation Consortium.

The second group is comprised of Rekayasa Industri, JGC Corporation, KBR Indonesia and JGC Indonesia Consortium.

The contracts are for work on Train 3, a new addition to Tangguh that will boost the plant’s capacity from 7.6 million tons per year to 11.4 million tons per year.

The onshore FEED work is planned for 12 months and will cover the new LNG Train, LNG jetty and associated infrastructure.

The total value of the contracts was not disclosed.

Tangguh is located in the Teluk Bintuni Regency in Papua Barat province of Indonesia.

The facility is the first fully-vertically integrated LNG operation in Indonesia, producing gas from the Papua Barat offshore site and delivering LNG to customers around Asia and the U.S.

BP and the Tangguh partners also signed a sales and purchase agreement with Indonesia’s state owned electricity company PT. PLN (Persero) to supply up to 1.5 million tons of LNG each year from 2015 to 2033.

Supply will initially be provided from Tangguh’s existing two LNG trains.

The agreement commits 40 percent of annual production from Train 3 to Indonesia’s domestic market.

“The Train 3 Project will deliver significant value, including much needed energy to Indonesia,” BP Group Chief Executive Bob Dudley said.

BP operates Tangguh with a 37.16 percent stake.


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