BP and its partners have made a significant move in advancing Indonesia’s energy transition with a $7 billion investment in the Tangguh Ubadari Carbon Capture, Utilization, and Storage (CCUS) project. Set to commence in 2028, the project will enhance gas production and sequestration capabilities, marking a milestone for Indonesia as the country’s first large-scale CCUS initiative.
The Tangguh UCC project will sequester up to 15 million tonnes of CO2 in its initial phase, contributing to BP’s broader strategy of reducing emissions while addressing growing regional energy demands. Leveraging existing infrastructure at BP’s Tangguh LNG facility in Papua Barat, the project will also unlock 3 trillion cubic feet of additional gas resources, boosting liquefaction capacity to 11.4 million tonnes per year.
BP CEO Murray Auchincloss emphasized that the project is a testament to the company’s long-standing partnership with Indonesia, where it has operated for over 55 years. The Tangguh UCC initiative will be integral to BP’s plans to support Southeast Asia’s growing energy needs while advancing its sustainable energy goals. “This development not only enhances gas recovery but also represents a major step in Indonesia’s journey toward carbon-neutral energy solutions,” said Auchincloss.
Designated as a national strategic project by the Indonesian government, the Tangguh UCC project reflects global collaboration with partners such as China’s CNOOC and Japan’s Mitsubishi Corporation. The project’s scale and innovation align with Indonesia’s push to drive economic growth through energy, education, and infrastructure, with total investments from British firms, including BP, reaching $8.5 billion.
Indonesian President Prabowo Subianto praised the project, stating that it demonstrates international confidence in Indonesia’s economy and energy future. BP’s investment highlights its commitment to supporting the nation’s energy transition while bolstering regional energy security in Asia.
This development also follows similar strides made by BP in collaboration with other energy giants, such as Equinor and Shell, working towards advancing global sustainable energy targets.
