bp has announced a final investment decision on the $7 billion (€6.7 billion) Tangguh Ubadari, CCUS, compression project (UCC), which has the potential to unlock around 3 trillion cubic feet of additional gas resources in Indonesia.
The announcement was made by Murray Auchincloss, bp’s chief executive officer, during a meeting with Indonesian President Prabowo Subianto in London.
The UCC project, which comprises the Ubadari gas field development, enhanced gas recovery through carbon capture, utilisation and storage (CCUS) and onshore compression, expands and utilises existing infrastructure at the Tangguh LNG facility in Papua Barat, Indonesia. Production at the Ubadari field is expected to start in 2028.
Murray Auchincloss, CEO of bp, said: “This project not only unlocks a fantastic gas resource, it also represents an Indonesian first through the use of CCUS to maximise gas recovery.
“bp has operated in Indonesia for more than 55 years, and the strength of our relationships enables us to bring deep technical experience in helping to deliver this innovative development. We deeply appreciate the continued support of the Government of Indonesia and partners and look forward to helping the region meet its growing energy needs.”
Tangguh CCUS aims to be the first CCUS project developed at scale in Indonesia, with potential for sequestering around 15 million tonnes of CO2 from Tangguh’s emissions in its initial phase.
The UCC project has been designated as a national strategic project by the Government of Indonesia and represents the continued development of Tangguh, following the addition of the third LNG train which began operation in 2023 and brought total plant liquefaction capacity to 11.4 million tonnes per year.
bp invests in Indonesian gas project
