Tangguh LNG Project is a major greenfield development to extract natural gas from gas fields in Berau and Bintuni bay area of Papua,Indonesia, and to liquefy it into LNG for shipping to export markets. The Project will include gas production facilities and LNG plant facilities, with associated infrastructure, including a seaport and airfield. Facilities will be in the districts of Babo and Arandai in Teluk Bintuni regency , but project activities will extend to the neighboring regencies of Fak Fak, Sorong, and Manokwari.
Significant volumes of gas were discovered around the Project in 1994. By 1998, substantial reserves had been delineated from six fields within three production-sharing contract (PSC) areas. The gas fields have proven reserves of 14.4 trillion cubic feet (tcf), and together with probable and possible reserves, Tangguh has the potential to yield a total of 23.7 tcf of gas. Proven reserves for each field are listed below together with shares of each PSC partner. The combined fields are considered to have the potential to support more than the two trains in the current plan and the Project may be expanded in the future. Tangguh LNG has obtained four long-term contracts with Fujian LNG in China, K-Powerand POSCO in Korea, and Sempra Energy in Mexico
Shareholder
Through stock ownership in the cooperation contracts , BP (British Petroleum) has a 37.16% from Tangguh LNG Project. Other shareholders, namely:
- Nippon Oil Exploration (Berau) Ltd (owned by Nippon Oil Exploration Limited and the Japan Oil, Gas and Metals National Corporation) with the 12.23%
- KG Berau / KG Wiriagar (owned by Kanematsu Corporation, Overseas Petroleum Corporation, a subsidiary of Mitsui & Co., Ltd.., And the Japan Oil, Gas and Metals National Corporation) with the 10.0%
- LNG Japan Corporation (held by Sumitomo Corporation and Sojitz Corporation) with the 7.35%
- MI Berau B.V. (Owned by Mitsubishi Corporation and INPEX Corporation) of 16.30%
- CNOOC Limited and CNOOC Muturi Wiriagar Overseas Limited with the 13.90%
KBR Consortium (through a subsidiary in Indonesia PT. Brown & Root Indonesia, JGC Corporation and PT. Pertafenikki selected by the main operator BP Indonesia and colleagues through open competitive bidding process as the main contractor for the construction of onshore LNG facilities. Together they are known by the name of the Consortium KJP. Two other partners in the Tangguh project are General Electric and Saipem - both companies have experience in large projects in various countries. GE will provide the main turbine and compressor to drain the gas from the reservoir to the LNG, while Saipem, a world leader role in offshore construction, is responsible for all offshore construction and subsea in the Tangguh project.