The Tangguh liquid natural gas (LNG) project in Indonesia has signed and closed long-term financings for $2.6 billion. The greenfield project demonstrates the interest and growing confidence the international financing community has in both Indonesia and the oil and gas sector under the new oil and gas upstream implementation agency, Badan Pelaksana Kegiatan Usaha Hulu Minyak Dan Gas Bumi (BPMIGAS).
The Tangguh project has a lifespan of more than 30 years, to produce LNG in the remote Bintuni Bay area in Indonesia's eastern-most province of Irian Jaya Barat (Papua). The project is being led by energy company BP, with partners including China National Offshore Oil Company (CNOOC), Mitsubishi, INPEX, Kanematsu, LNG Japan and Nippon Oil. The overall project is expected to cost approximately $5.2 billion. This includes associated upstream development, marine infrastructure to transport gas from offshore gas fields, and construction of a processing plant. The gas...