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- $7 Billion Investment: BP and partners’ Tangguh UCC project will unlock 3 trillion cubic feet of additional gas resources and drive regional energy demand growth in Asia.
- First-of-Its-Kind CCUS in Indonesia: The project will sequester 15 million tonnes of CO2 in its initial phase, marking Indonesia’s first at-scale carbon capture, utilization, and storage initiative.
- National Strategic Project: Recognized by the Indonesian government, the development underscores BP’s commitment to sustainable energy and its longstanding partnership with Indonesia.
BP’s Investment in Indonesia’s Energy Transition
BP, on behalf of the Tangguh Production Sharing Contract partners, announced the final investment decision for the $7 billion Tangguh Ubadari, CCUS, Compression (UCC) project in Papua Barat, Indonesia. This milestone project, set to commence production in 2028, combines enhanced gas recovery with carbon capture, utilization, and storage (CCUS) technology.
“This project not only unlocks a fantastic gas resource, it also represents an Indonesian first through the use of CCUS to maximize 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. 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 Murray Auchincloss, BP CEO.
Strengthening Regional Energy Supply
The Tangguh UCC project leverages existing infrastructure at BP’s Tangguh LNG facility, enhancing its liquefaction capacity of 11.4 million tonnes per year. The initiative aims to sequester 15 million tonnes of CO2 emissions during its initial phase, utilizing innovative CCUS technology to boost gas production efficiency.
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“This shows their optimism in our economy,” remarked Indonesian President Prabowo Subianto, acknowledging BP’s significant investment alongside commitments totaling $8.5 billion from other British firms in energy, education, and infrastructure.
Strategic Importance
Designated as a national strategic project, the UCC initiative reflects BP’s disciplined financial strategy, delivering high returns while meeting energy demands in Indonesia and Asia. With major partners such as China’s CNOOC and Japan’s Mitsubishi Corporation, the project underscores global collaboration toward sustainable energy solutions.
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