BP has reached an agreement with Indonesian power utility PT PLN to supply LNG between the 2017 and 2033, securing a new contract for the development of a third train at its Tangguh LNG plant in Indonesia.
Under the terms of the agreement, BP will supply PLN with 20 LNG cargoes per year (around 60 kt of LNG each, i.e. 1.2 Mt/year of LNG) between 2017 and 2019 and with 44 cargoes per year from 2020 to 2033 (around 60 kt of LNG each, i.e. 2.6 Mt/year of LNG). LNG will be sourced from the 7.6 Mt/year Tangguh LNG production plant in Bintuni Bay, West Papua, where a third 3.8 Mt/year train is under development.
BP is seeking LNG buyers to proceed with financing for the third train. So far, the company has reached agreements with Kansai Electric (Japan) to acquire 1 Mt/year from the third train and with Indonesia's national power utility PLN for an additional 1.5 Mt/year. Final investment decision is expected in June 2016, upon completion of the Front End Engineering Design study. The project could be commissioned in 2020.
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