BP has officially announced a final investment decision for the US$7 billion Tangguh Ubadari CCUS Compression project (UCC), a significant initiative that aims to unlock approximately 3 trillion cubic feet of additional gas resources in Indonesia.
This announcement was made by BP’s CEO, Murray Auchincloss, during a meeting with Indonesian President H.E. Prabowo Subianto in London.
The Tangguh UCC project is poised to be a landmark development in Indonesia, marking the country’s first large-scale implementation of carbon capture, utilisation, and storage (CCUS) technology.
This innovative approach is expected to enhance gas recovery while also sequestering around 15 million tonnes of CO2 emissions during its initial phase.
Auchincloss emphasised the project’s dual benefits, stating: “This project not only unlocks a fantastic gas resource, it also represents an Indonesian first through the use of CCUS to maximise gas recovery.”
The UCC project will expand and utilise existing infrastructure at the Tangguh LNG facility located in Papua Barat, Indonesia.
Production at the Ubadari gas field is anticipated to commence in 2028.
The investment reflects BP and its partners’ confidence in Indonesia’s investment climate and underscores their commitment to strengthening business operations within the country.
The Government of Indonesia has designated the UCC project as a national strategic initiative, which follows the recent addition of a third LNG train that began operations in 2023, increasing total plant liquefaction capacity to 11.4 million tonnes per year.
This strategic location positions Tangguh favourably for accessing high-value regional markets and meeting the growing energy demands across Asia.
In addition to its economic implications, the UCC project is set to support local workforce development, with an aim for 85 per cent of its workforce to be Papuan by 2029.
Currently, 99 per cent of Tangguh’s operational workforce consists of Indonesians, including 70 per cent from Papua.
In summary, BP’s investment in the Tangguh Ubadari CCUS project not only enhances Indonesia’s energy resources but also reinforces its commitment to sustainable practices through innovative carbon management strategies.
This initiative is expected to play a vital role in addressing the increasing energy needs of Asia while contributing positively to environmental goals.