Mitsui, BP and partners green light Tangguh LNG project in Indonesia

Mitsui & Co announced on Friday that a consortium in which it participates has made a final investment decision on the Tangguh Ubadari joint venture gas project.

Mitsui, BP and partners green light Tangguh LNG project in Indonesia

Located in the Ubadari gas field in Papua Barat Province, Indonesia, the project focuses on gas recovery as well as carbon capture, utilization, and storage. It represents a $7 billion investment. The Tokyo-based industrial conglomerate stated that operations and production will commence in phases starting in 2028, with a production capacity of 11.4 million tons. The project is operated by a BP PLC-led consortium under a production-sharing agreement with SKK Migas, Indonesia’s upstream oil and gas regulatory authority.

Mitsui highlights the project’s potential

Mitsui holds an 8.56% stake in the venture through KG Berau Petroleum, alongside partners including the Japan Organization for Metals & Energy Security, JX Nippon Oil & Gas Exploration Corp, Mitsubishi Corp, and Inpex Corp. BP holds the largest stake at 40.22%, while Mitsubishi and Inpex jointly control an additional 16.30% via MI Berau BV. China National Offshore Oil Corp (CNOOC) has a 13.90% stake through CNOOC Maturi Ltd. Mitsui highlighted the project’s potential, stating, “The initiative aims to unlock an additional three trillion cubic feet of natural gas, playing a critical role in ensuring stable energy supplies to Asian countries, including Japan, during the energy transition era.”