bp and its partners have approved a $7bn investment in the Tangguh Ubadari CCUS Compression (UCC) project, set to unlock an estimated three trillion cubic feet of additional gas resources in Papua Barat, Indonesia.
This project, a first for the country, features large-scale carbon capture, utilisation and storage (CCUS) technology aimed at sequestering around 15 million tonnes of CO2 in its initial phase.
The decision was announced by bp CEO Murray Auchincloss during a meeting in London with Indonesian President H.E. Prabowo Subianto. Auchincloss emphasised bp’s confidence in Indonesia’s investment environment, stating, “This project not only unlocks a fantastic gas resource, it also represents an Indonesian first through the use of CCUS to maximise gas recovery.”
“bp has operated in Indonesia for more than fifty-five years, and the strength of our relationships enables us to bring deep technical experience in helping to deliver this innovative development.”
The UCC project comprises the development of the Ubadari gas field, enhanced gas recovery using CCUS, and additional onshore compression infrastructure. This initiative builds upon the existing Tangguh LNG facility, whose liquefaction capacity expanded to 11.4 million tonnes per year following the commissioning of a third LNG train in 2023. Production at the Ubadari field is anticipated to commence in 2028.
The project is expected to reduce the operational emissions of the Tangguh LNG facility by injecting captured CO2 into a dedicated offshore storage site. The infrastructure will include three injection wells, an offshore platform, a CO2 pipeline, and onshore facilities for CO2 removal and compression.
bp holds a 40.22% operating interest in the Tangguh LNG project, with partners including MI Berau B.V. (16.30%), CNOOC Muturi Limited (13.90%), Nippon Oil Exploration (Berau) Ltd. (12.23%), KG Berau Petroleum Ltd. (8.56%), KG Wiriagar Petroleum Ltd. (1.44%), and Indonesia Natural Gas Resources Muturi Inc. (7.35%).
“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,” said Auchincloss.
Carbon capture, utilisation, and storage (CCUS) projects are gaining momentum across Asia as the region seeks to balance its growing energy demand with climate goals. In addition to the Tangguh project, Malaysia’s Kasawari CCS project is set to store over 3.3 million tonnes annually from offshore natural gas production.
Singapore has outlined plans to develop a regional carbon storage hub capable of capturing and storing at least 2.5 million tonnes of CO2 a year by 2030.. Meanwhile, China’s vast Daqing CCS facility focuses on enhanced oil recovery, capturing up to 3 million tonnes of CO2 annually.
