OREANDA-NEWS. The shareholders of the Tangguh Production Sharing Contract Partners led by BP, the project operator, today announced that the final investment decision (FID) has been approved to advance the development of the Tangguh Expansion Project in the Papua Barat Province of Indonesia. The decision follows the government of Indonesia’s approval of the Plan of Development II in 2012 and issuance of the project’s environmental and social impact assessment (AMDAL) and environmental permit in 2014.

The Tangguh Expansion Project will add a third LNG process train (Train 3) with 3.8 million tons per annum (mtpa) of production capacity to the existing facility (two trains with 7.6 mtpa of production capacity). The project also includes two offshore platforms, 13 new production wells, a new LNG jetty, and supporting infrastructure. The commencement of production is expected in 2020.

The Tangguh Expansion Project will play an important role in supporting Indonesia’s growing energy demand, with 75% of the Train 3 annual LNG production sold to the state electricity company PT. PLN (Persero). The remaining volumes are under contract to THE KANSAI ELECTRIC POWER CO., INC., the other foundation buyer for Train 3, contributing to Japan’s national energy security.

Awards for the project’s key engineering, procurement and construction (EPC) contracts are expected in the third quarter with construction to begin thereafter.

All the Japanese partners commit themselves to contribute to diversifying energy supply and securing competitive natural resources to Japan, through helping stable production and supply from Tangguh LNG project.