Menu

BP has drawn up plans to quadruple the size of its USD 5 billion gas plant in Indonesia. The fourfold expansion of the Tangguh liquified natural gas facility is being considered in order to take advantage of future growth in Asia.

The move would form part of chief executive Bob Dudley's plan to replicate multi-billion projects made by Shell that could generate long term cash and profits and fund growth in other areas. Growth in demand for LNG in the growing economies of China and India as well as Japan’s higher imports following the Fukishima nuclear disaster were both cited as potential reasons for the British supermajor to mount such a significant expansion.

Gde Pradnyana, a spokesman for Indonesian energy regulator BPMigas, told the wire service space was being prepared for eight trains at Tangguh, where there are two production lines with a combined capacity of 7.6 million metric tons of LNG a year. Gas resources for a third unit at Tangguh are “almost confirmed”, Pradnyana said. A decision to build the 3.8 million-ton-a-year train may be made this year, he added.