bp’s $7 billion Tangguh expansion aims to unlock 3 trillion cubic feet of gas in Indonesia

(WO) - bp and its partners have approved a $7 billion investment in the Tangguh Ubadari, CCUS, and Compression (UCC) project in Papua Barat, Indonesia. The development is expected to unlock around 3 trillion cubic feet of additional gas resources, aiming to meet the rising energy demand in Asia.

bp CEO Murray Auchincloss announced the decision during a meeting with Indonesian President Prabowo Subianto in London, emphasizing confidence in Indonesia's investment climate.

“This project not only unlocks a fantastic gas resource, it also represents an Indonesian first through the use of CCUS to maximize gas recovery,” Auchincloss stated. “We deeply appreciate the continued support of the Government of Indonesia and partners and look forward to helping the region meet its growing energy needs.”

The UCC project involves developing the Ubadari gas field, enhancing gas recovery through carbon capture, utilization, and storage (CCUS), and expanding onshore compression at the Tangguh LNG facility. Production from the Ubadari field is expected by 2028.

Tangguh’s CCUS component aims to be Indonesia's first large-scale carbon capture initiative, potentially sequestering around 15 million tonnes of CO₂ in its initial phase.

Designated a national strategic project, this expansion follows the launch of Tangguh’s third LNG train in 2023, which increased liquefaction capacity to 11.4 million tonnes annually.

bp highlighted that the investment aligns with its financial goals and underscores a commitment to sustainable energy development in Indonesia and the region.