Tangguh Train III Delay In Weak LNG Market

摘要

BP is reportedly struggling to sell capacity in its proposed third train at the Tangguh liquefed natural gas (LNG) facility, highlighting the downside risk to the expansion project. According to BP Indonesia chief Dharmawan Samsu, around 1.3mn tonnes of the 3.8mn tonnes expansion project are yet to be provisionally contracted. Currently, only Kansai Electric (1mn tonnes) and PLN (1.5mn tonnes) have off-take agreements for Tangguh Train III. Sales agreements for only around 65% of the new capacity make the project economics high risk and BP will face challenges sanctioning the USD12bn investment needed to complete the expansion project.