Kamis, 12 Maret 2009

Sabtu, 06 September 2008

Info Tangguh LNG

The Tangguh gas fields, situated near the Bintuni Bay region of West Papua province, were discovered by ARCO Exploration in the mid 1990s. Called 'Tangguh' after the Indonesian word for 'resilient', the reserves are estimated to be over 18.3 trillion ft³. These fields have the potential to become one of the world's premier natural gas supplies. In 1997 the Tangguh LNG project was initiated by ARCO and Pertamina to exploit these gas fields; the six fields include two super-giant gas fields (Wiriagar Deep and Vorwata) as well as several smaller adjacent fields (Roabiba, Ofaweri, Wos and Ubadari).

The Tangguh LNG Project involves tapping the Tangguh fields, processing the gas into LNG and loading it for shipment. The project includes plans for two unmanned offshore production platforms that will pump gas from the reservoir and then relay it through subsea pipelines to an LNG processing facility in Bintuni Bay where the village of Tanah Merah is currently located. The LNG gas liquefaction plant will initially consist of two liquefaction trains with a combined capacity of 7 million t/yr LNG. There will also be the associated jetties and marine facilities of a tanker terminal to export the gas via tanker to markets in East Asia and North America.

The land acquired for the LNG processing facility measures 3,200ha, much of which will remain an environmental 'green zone' as the initial facility will only require 800ha. The investment into the project is estimated at $3 billion. On consultation with the local community the construction of the processing plant has resulted in the relocation of the communities of Tanah Merah, a village that has been inhabited by 127 families and also Onar. The land was acquired in 1999 and involved a negotiation of resettlement agreements; specific agreements detailing BP and community agreements (including village and house design) were developed in 2002 and 2003 (the village move was scheduled for July 2004). The contractors responsible for construction of new village facilities for Tanah Merah are Panata Thiess Joint Operation and for Onar PT Firma Irian Djaya.


When fully operational, the project will require an estimated 500 personnel for on-shore and offshore activities, many of whom are currently undergoing training. Papuan engineers have been recruited since 2000 and are now in training at various petroleum facilities to prepare them for their roles on the Tangguh Project. The initial pool intake consisted of 29 individuals. In different batches they are currently gaining experience in BP's Java operations, and undergoing training at the Oil and Gas centre at CEPU and in other areas.


BP is the operator of the Tangguh Project as a PSC contractor to the Indonesian oil and gas regulatory body, BPMIGAS (Pertamina was also involved). In April 2003, the authority to operate the LNG plant was handed over from Pertamina to BP in line with Pertamina's change from regulator to a stand-alone company. The gas fields are covered by three separate PSCs. The Muturi, Berau and Wiriagar fields are each shared by different partner shareholders in the Tangguh Project as of May 2004: BP - 37.16%; MI Berau BV (held by Mitsubishi Corporation and INPEX Corporation) - 16.30%; CNOOC Ltd - 16.96%; Nippon Oil Exploration Berau - 12.23%; KG Companies (held by Japan National Oil Corporation, Kanematsu Corporation and Overseas Petroleum Corporation) - 10.0%; and LNG Japan Corporation (held by Nissho Iwai Corporation and Sumitomo Corporation) - 7.35%. Production is scheduled to commence in 2007-08.


In October 2002, the Indonesian Government approved the Tangguh Project's AMDAL (Environmental and Social Impact Assessment). In April 2003, a contractor consortium of Kellogg, Brown and Root, JGC Corporation and PT Pertafenikki Engineering (KJP) was selected for the engineering, procurement and construction (EPC) contract for the Tangguh liquefied natural gas (LNG) facilities. Babo was selected as the base camp area for the project and accordingly the airstrip and landing jetty were refurbished (this work being completed by May 2003). In September 2003 the compressors, a long lead item for the liquefaction plant, were ordered from GE Oil and Gas (contract worth $90 million).

The processing facility is expected to initially consist of two LNG processing trains, a farm of storage tanks and an LNG tanker loading terminal, as well as an aircraft landing strip, maintenance facilities, offices and a personnel accommodation complex. In future phases of construction the LNG liquefaction plant, depending upon requirements, could be expanded to five or eight trains.

The Tangguh Project signed up its first customer in September 2002 - CNOOC's second LNG terminal at Fujian, China, will be supplied with 2.6 million t/yr for 25 years. CNOOC acquired a 12.5% stake in the Tangguh Project in February 2003 from BP, which was evidence of their interest and confidence in the project (also evidence of the growing demand for LNG in China).

K Power (800,000t/yr) and steel company Posco (550,000t/yr) in Korea selected the Tangguh Co-ventures as their preferred supplier for up to 1.35 million t/yr of LNG in August 2003, in a 20-year deal worth an estimated $2 billion. Korea is the world's fastest growing LNG market. K Power will use the LNG to supply its power plant, currently being built in Gwang Yang, South Korea, which will start operating in 2006. However BP will initially have to route supplies from another Indonesian operation to meet K Power's demands after announcing it was pushing back the opening of Tangguh by a year until 2008.

In addition, Sempra Energy LNG Corporation signed a deal for a 20-year supply of LNG in early 2004 for markets in the US and Mexico. Under the agreement, 3.7 million t/yr LNG will be delivered from the Tangguh fields by LNG tanker starting in 2007 to Sempra's proposed LNG import (receipt) and re-gasification terminal 14 miles from Ensenada in Baja, California, Mexico.

To meet the supply contracts that will be effective before 2008, BP will acquire gas from the market or from Bontang. The Bontang LNG plant is located at East Kalimantan in Borneo. Its main shareholder is Pertamina (which has links with the Tangguh Project), with private partners including Total, Fina and Elf. BP has commented that its decision to delay commercial production from Tangguh is due to logistical and financial concerns.