BP To Achieve Full Production At Its Tangguh LNG Plant In Papua, Indonesia

Published: 11-Oct-2009

BP Plc (BP) said that its Tangguh liquefied natural gas (LNG) project will achieve full production this month following a complete shutdown at the plant in August 2009, the Jakarta Globe reported. The company has faced delays at the plant since the 7.6 million ton-a-year operation started production in July 2009. Both of the plant’s processing units, or trains, were closed in August 2009 and September 2009 to resolve technical problems.

“Train 2 has been producing LNG since October 2 and Train 1 started on September 25, with full production expected to commence this month,” Nico Kanter, BP’s Indonesia country head said.

“Tangguh has encountered initial problems but these have been promptly repaired,” Nico said.

BP's Chief Executive, Tony Hayward said of Tangguh, “We have been taking a more relaxed approach to commissioning than we otherwise might have done, given the very depressed market.”

BP is expected to export its fourth shipment of 150,000 metric tons of LNG to China National Offshore Oil Corporation’s terminal in Fujian area sometime next week, Raden Priyono, head of upstream oil and gas regulator BPMigas, said.

“BP is on track to deliver on its commitments for the remainder of the year,” Nico said.

The $5 billion Tangguh plant, situated in Papua’s Bintuni Bay, holds 14.4 trillion cubic feet of proven gas reserves.

BP's Indonesian unit owns 37% of the project. Its partners in the project include Mitsubishi Corporation, Nippon Oil Corporation and Sumitomo Corporation, as well as CNOOC Limited and Talisman Energy Inc.

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