Contracts for BP's Indonesian LNG Project

BP said on Wednesday it had awarded the onshore front-end engineering and design (FEED) contracts for the $12 billion Tangguh LNG expansion project to two Indonesian consortiums.

BP and its Tangguh partners also signed a sales and purchase agreement with Indonesia's state-owned electricity company to supply up to 1.5 million tonnes of liquefied natural gas (LNGLF) (LNG) per year from 2015 to 2033.

The expansion of the Tangguh LNG project is expected to add 3.8 million tonnes per year (mtpa) liquefaction capacity to Tangguh, bringing capacity to 11.4 mtpa, BP said.

The onshore FEED is planned for 12 months covering the new LNG train, LNG jetty and associated infrastructure.

The first group that was awarded the FEED contract includes Tripatra Engineers and constructors, Tripatra Engineering, Chiyoda International Indonesia, Saipem Indonesia, Suluh Ardhi Engineering and Chiyoda Corporation Consortium.

The second group is made up of Rekayasa Industri, JGC Corporation, KBR Indonesia and JGC Indonesia Consortium, BP said in a statement.

Reporting by Ron Bousso