BP, along with its coventurers under the Tangguh Production Sharing Contract, announced a seminal investment into the $7 billion Tangguh Ubadari, Carbon Capture, Utilisation, and Storage (CCUS), and Compression (UCC) project in Papua Barat, Indonesia. This ambitious drive is truly a stride forward for Indonesia in its energy transition efforts and BP’s commitment to developing productive energy in the region.
In 2028, production will start for this project, which integrates improved gas recovery with the first-ever Indonesian CCUS in commercial scale, unlocking about 3 trillion cubic feet of additional gas resources. With its novel approach, the Tangguh UCC project enables Indonesia to set a leadership pace in the application of best-in-class solutions to spur regional growth and leverage opportunities in meeting growing energy demands while assisting with global climate challenges.
A key strategic milestone within Indonesia’s energy landscape
The Tangguh UCC project capitalizes on the infrastructure that already exists on site at BP’s Tangguh LNG facility, which is Indonesia’s largest liquefied natural gas source. Currently, the plant has a liquefaction capacity of 11.4 million tonnes per year, and the UCC project increases this capability further. This process includes the capture of 15 million tonnes of CO2 in the front-end phase through the use of highly developed CCUS technology. This has made Tangguh UCC the pioneer in achieving lesser emissions while being efficient in gas recovery.
In his proud words, BP CEO Murray Auchincloss said,
This project unlocks a fantastic gas resource and also represents an Indonesian first, using CCUS to maximize gas recovery. BP has operated in Indonesia for more than fifty-five years and the strength of our relationships has allowed us to bring deep technical experience in helping to deliver this innovative development.”. We are very grateful for the on-going support of the Government of Indonesia and partners and look forward to helping the region meet its growing energy needs.
National Strategic Project with Global Collaboration
The Indonesian government has classified the Tangguh UCC project as a National Strategic Project. It shows that such a project should play an important role in sustaining Indonesia’s energy security and economic growth. In remarks addressing BP’s significant investment, the President of Indonesia, Prabowo Subianto, said: “This level of investment reflects optimism about the country’s economic potential. In addition to $7 billion by BP, British businesses have committed a further $8.5 billion in energy, education, and infrastructure, demonstrating strong bilateral cooperation between Indonesia and the UK”.
The project also involves a list of global partners, such as CNOOC from China and Mitsubishi Corporation from Japan, demonstrating that international partnership can truly make a difference in developing sustainable energy solutions. Indeed, this worldwide partnership will reflect a collaborative pursuit toward climate goals, particularly in trying to meet the ever-growing energy demands in Asia and beyond.
Trailblazing Carbon Capture in Indonesia
The Tangguh UCC project is therefore an unprecedented move in carbon management and climate resilience in Indonesia, the first at scale. In this regard, CCUS technology captures and stores CO2 emissions; otherwise, they would find their way into the atmosphere. This is a type of technology that is core to the matter of reducing greenhouse gas emissions in energy-intensive sectors. Its success will stand as a precedent for other nations to develop innovative ways of decarbonizing their energy sectors.
The focus on developing CCUS and related technologies is in line with the sustainability imperative of the Indonesian government. Upon completing this project, BP will not only meet the ever-increasing short-term energy demand but also meet long-term climate goals, and thus the Tangguh UCC is a double success in both energy supply and environmentally responsible improvement.
High Returns and Sustainable Solutions
The Tangguh UCC project is part of BP’s disciplined financial strategy that focuses on delivering high returns while fulfilling the commitment to providing sustainable energy solutions. Advanced CCUS technology in the project ensures efficient gas production, keeping pace with the rising energy demands of Indonesia and the wider Asia-Pacific region.
A very significant investment and technological know-how, which cements BP’s long-term partnership of more than five decades with Indonesia, has been an integral factor in the country’s economic development and advancement of its energy infrastructure.
A Future-Ready Energy Hub
It does not only talk to the immediate energy needs of Indonesia but also paves the way forward for a more sustainable energy future with the Tangguh UCC project. It is a transformative step in Indonesia’s path to becoming a regional leader for clean energy innovation when it embarks on the project while exploring CCUS technology and global collaboration.
BP’s Tangguh UCC Project is a beacon of innovation and cooperation in a world that increasingly focuses on sustainability and carbon reduction: it exemplifies how industry leaders can drive the global transition towards cleaner energy systems.