BP, along with its Tangguh production sharing contract partners, has made investment decision on the $7 billion Tangguh Ubadari CCUS Compression (UCC) project in Indonesia.
The initiative aims to unlock 3 trillion cubic feet of additional gas resources, addressing the growing energy demand in Asia.
BP CEO Murray Auchincloss made the announcement during a meeting with Indonesian President Prabowo Subianto in London. The investment underscores bp’s confidence in Indonesia’s favorable investment climate and its commitment to expanding operations in the country.
“This project not only unlocks a fantastic gas resource, it also represents an Indonesian first through the use of CCUS to maximize gas recovery,” Murray Auchincloss said.
Key Details of the Tangguh UCC Project:
The project includes the development of the Ubadari gas field, enhanced gas recovery through Carbon Capture, Utilization, and Storage (CCUS), and expansion of onshore compression facilities.
Production at the Ubadari field is expected to begin in 2028.
The project aims to sequester up to 15 million tonnes of CO2 in its initial phase, making it Indonesia’s first large-scale CCUS project.
The Tangguh UCC project builds on the Tangguh LNG facility’s existing infrastructure, which saw its liquefaction capacity rise to 11.4 million tonnes per year with the addition of a third LNG train in 2023. Located in Papua Barat, the facility is strategically positioned to serve high-value regional markets.
This development reaffirms BP’s focus on sustainable energy solutions and marks a significant step toward reducing emissions while meeting growing energy needs across Asia.