Tangguh

Tangguh LNG Project Profile

Location

The Tangguh LNG project is situated on the south shore of Bintuni Bay in the Teluk Bintuni Regency, Papua Barat Province, Indonesia.

Discovery and Initiation

The Tangguh gas fields were discovered by ARCO Exploration in the mid-1990s. The project was initiated by ARCO and Pertamina in 1997 to exploit these gas fields, which include the super-giant fields of Wiriagar Deep and Vorwata, as well as the smaller adjacent fields of Roabiba, Ofaweri, Wos, and Ubadari.

Project Overview

The Tangguh LNG project involves the production, processing, and export of liquefied natural gas (LNG) and associated liquids. Here are the key components:

• Offshore Production: Gas is produced from two unmanned offshore production platforms, VR-A and VR-B, located in the Vorwata field. These platforms are connected to the onshore facilities via subsea pipelines.
• Onshore Facilities: The onshore LNG plant, located near the village of Tanah Merah, processes the gas into LNG. The plant initially consisted of two liquefaction trains with a combined capacity of 7.6 million tonnes per year (MTPA) of LNG. The first train began production in mid-June 2009, and the second train came online in the third quarter of 2009.

Expansion Project

The Tangguh Expansion Project (TEP) was approved by the Indonesian government in 2012 and received environmental approvals in August 2014. Here are the key aspects of the expansion:

• Offshore Development: The expansion includes the construction of two new normally unattended installations (NUIs), 13 new development wells, and one DCRI well. These are tied in by pipelines to the onshore LNG plant.
• Onshore Development: The expansion added a third LNG train with a liquefaction capacity of 3.8 MTPA, similar to the existing trains. Other additions include a new onshore receiving facility (ORF), an LNG and condensate loading jetty, additional boil-off gas (BOG) recovery facilities, utilities, flares, and infrastructure to support three-train operations.
• Capacity Increase: With the third train, the total production capacity of the LNG plant increased to 11.4 MTPA.

Project Timeline

• Initial Production: Started in 2009 with the first two trains.
• Expansion Approval: Approved by the Indonesian government in 2012.
• Environmental Approval: Received in August 2014.
• Final Investment Decision: Taken in July 2016.
• Construction and Delays: The project faced delays due to natural disasters in 2018 and the COVID-19 pandemic. Construction was completed, and the third train commenced commercial operations in October 2023.

Partners and Operators

The project is operated by BP Berau on behalf of its partners:

• BP Berau: 40.22%
• MI Berau (Mitsubishi Corp and INPEX Corp): 16.30%
• CNOOC Muturi: 13.90%
• Nippon Oil Exploration (Berau): 12.23%
• KG Berau Petroleum: 8.56%
• Indonesia Natural Gas Resources Muturi: 7.35%
• KG Wiriagar Petroleum: 1.44%.

Environmental Considerations

The project has been managed with significant environmental sensitivity:

• The project area includes dense mangrove forests and is inhabited by the Tanah Merah community. To mitigate impacts, 127 families were rehoused using imported wood, and the project's footprint was reduced from 800 to less than 650 hectares.
• Workers were housed away from local residents, and no roads were built to the area to discourage immigration. Workers and equipment were transported by plane or boat.

Infrastructure and Facilities

• Offshore Platforms: Initially, two platforms (VR-A and VR-B) were used. The expansion added two new offshore platforms.
• Subsea Pipelines: Gas is transported from the offshore platforms to the onshore receiving facilities via subsea pipelines.
• LNG Plant: The onshore LNG plant includes two (now three) liquefaction trains, a farm of storage tanks, and an LNG tanker loading terminal.
• Marine Facilities: The project includes jetties and marine facilities for exporting LNG via tankers.

Economic Impact

The project has significant economic benefits:

• The expansion project involved approximately 13,500 workers and 155 million workhours, boosting the economies of Indonesia and Papua Barat Province.
• The increased production will help meet Indonesia's rising energy demand, with a significant portion of the LNG being sold to the state electricity company, PT PLN (Persero).

Future Development

There are plans for further expansion, including the potential construction of a fourth LNG train as part of future development. This would involve nine offshore platforms, each with 16 well slots, nine subsea pipelines, and supporting facilities.