Tangguh LNG New Line to Target Buyers in Japan, Korea
BP Plc is aiming to supply LNG to Japan and South Korea from its Tangguh plant in Indonesia.
The company may export as much as 60 percent of the LNG from its third production line at Tangguh, according to William Lin, the company’s Asia-Pacific president, Bloomberg reported.
Supplies of LNG are expected to be tight in Asia until 2018 amid firm demand.
Tangguh’s third line is projected to start production as early as 2018 after construction begins in 2014, Lin said. The facility will cost $11 billion and produce as much as 3.8 million metric tons a year of the fuel.
BP has a 37 percent interest in Tangguh. Other partners include CNOOC ltd with about 14 percent and Nippon Oil Exploration (Berau) Ltd. with 12 percent.
Bloomber report said that Indonesia is seeking new LNG projects as its older facilities at Arun in Aceh province and Bontang in East Kalimantan start to run out of supply.
“With Bontang and Arun going down, buyers see Tangguh as the next big LNG center with Train 3 and possibly future trains if we can find more gas in the area,” Lin told Bloomberg.
BP is talking with customers about long-term supply from the third train, Lin said without giving details on the potential buyers.