BP Greenlights Indonesia Carbon Capture Project

BP has announced a final investment decision on the US$7 billion Tangguh Ubadari carbon capture, utilization, and storage (CCUS) compression project (UCC). The UCC project, which comprises the Ubadari gas field development, enhanced gas recovery CCUS, and onshore compression, expands and utilizes existing infrastructure at the Tangguh liquefied natural gas (LNG) facility in Papua Barat, Indonesia. Production at the Ubadari field is expected to start in 2028.

Tangguh CCUS aims to be the first CCUS project developed at scale in Indonesia, with potential for sequestering around 16.5 million tons (15 million tonnes) of carbon dioxide from Tangguh’s emissions in its initial phase. The UCC project has been designated as a national strategic project by the Government of Indonesia and represents the continued development of Tangguh, following the addition of the third LNG train which began operation in 2023 and brought total plant liquefaction capacity to 12.57 million tons (11.4 million tonnes) per year.