BP and its Partners Commit $7 Billion to Groundbreaking UCC Project in Indonesia

BP, in collaboration with its partners, has approved a $7 billion investment in the Tangguh Ubadari, CCUS, and Compression (UCC) project in Papua Barat, Indonesia. This development is set to unlock approximately 3 trillion cubic feet of additional gas resources, aiming to address Asia’s growing energy demands.

The announcement was made by BP CEO Murray Auchincloss during a meeting with Indonesian President Prabowo Subianto in London. Auchincloss conveyed BP’s confidence in Indonesia’s investment climate and emphasized the project’s significance as a milestone for the country. He highlighted that the initiative not only taps into substantial gas reserves but also marks Indonesia’s first use of carbon capture, utilization, and storage (CCUS) to enhance gas recovery.

The UCC project includes the development of the Ubadari gas field, the integration of CCUS to improve gas extraction efficiency, and the expansion of onshore compression facilities at the Tangguh LNG site. Production from the Ubadari field is projected to begin in 2028.

A cornerstone of the project, Tangguh’s CCUS initiative is set to become Indonesia’s first large-scale carbon capture system, with the potential to sequester around 15 million tonnes of CO₂ in its initial phase.

As a designated national strategic project, the UCC initiative builds on the recent expansion of Tangguh’s LNG operations. The launch of its third LNG train in 2023 boosted the site’s liquefaction capacity to 11.4 million tonnes annually, reinforcing its role in meeting regional energy needs.

BP underscored that this investment aligns with its broader financial objectives while reaffirming its commitment to sustainable energy solutions in Indonesia and the wider region.

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