Key Highlights

•Scale and Impact: The Tangguh UCC project will capture and store an estimated 15 million tonnes of CO2 during its first phase, while significantly enhancing gas recovery at the Ubadari gas field.

•Strategic Importance: Production at the Ubadari field is slated to begin in 2028, with the project utilizing existing infrastructure at the Tangguh LNG facility in Papua Barat. The facility recently added a third LNG train, boosting liquefaction capacity to 11.4 million tonnes annually.

•Economic and Workforce Development: By 2029, 85% of the project’s workforce is expected to be Papuan, building on an already strong foundation—70% of Tangguh’s current operational workforce is from Papua, and 99% are Indonesian nationals.

Positioning for the Future

The Indonesian government has designated the Tangguh UCC initiative as a national strategic project, recognizing its potential to address Asia’s surging energy demands while supporting regional economic growth. Situated in Papua Barat, the Tangguh LNG facility benefits from proximity to high-value markets in Asia, making it a crucial node in the region’s energy supply chain.

Murray Auchincloss emphasized the dual benefits of the initiative, stating:

“This project not only unlocks a fantastic gas resource, it also represents an Indonesian first through the use of CCUS to maximize gas recovery.”

Broader Implications

As BP pushes forward with its energy transition strategy, the Tangguh UCC project exemplifies a commitment to integrating sustainability with resource development. The innovative deployment of CCUS technology aligns with global decarbonization goals, making the project a key contributor to Indonesia’s environmental and energy objectives.

This $7 billion investment reinforces BP’s partnership with Indonesia and underscores the country’s pivotal role in the evolving energy landscape of Southeast Asia. As production ramps up and local workforce capacity strengthens, the Tangguh Ubadari CCUS project is expected to set new benchmarks for sustainable resource development in the region.

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