bp progresses Tangguh CCS, signs broader cooperation with Chubu on the study for potential international CCS hub & cluster
JAKARTA – Following the successful completion of the Nagoya CCS feasibility study this year, BP Berau Ltd (“bp”) and Chubu Electric Power Co., Inc (“Chubu Electric”) have expanded their collaboration to explore a CCS value chain from Port of Nagoya, Japan, to the Tangguh field in Teluk Bintuni, Papua Barat, Indonesia.
The expanded collaboration is captured in the memorandum of understanding (MoU) amendment that bp, as the operator of Tangguh Production Sharing Contract (PSC), and Chubu Electric signed today. The MoU amends and broadens the scope in the previous MoU inked in September 2023, and now includes evaluation on cost optimization across the CCS value chain and business models to enable commercial CCS projects from Nagoya, Japan, to Tangguh in Indonesia.
Kathy Wu, bp regional president Asia Pacific, gas and low carbon energy and Hiroki Sato, Division CEO of global business at Chubu Electric, signed the MoU amendment on the second day of Asia Zero Emission Community (AZEC) Ministerial Meeting today at The St. Regis hotel, Jakarta.
“The MoU amendment marks the continuation of an impactful collaboration between Chubu and bp, together with our Tangguh partners. As the community engages at AZEC and finds a way to support Asia’s net zero agenda, this collaboration showcases our part of the works in progressing decarbonization in the Asia region,” Kathy said.
“I believe CCUS is one of the essential pieces for the journey of decarbonization. There is no doubt bp is a very reliable partner for Chubu. Taking the opportunity of this memorable event, I wish to proceed our Nagoya Port CCUS project with the support by the Government of Indonesia and Japan.” Hiroki Sato added.
The wider MoU will now cover also identification of legal requirements for a large-scale hub & cluster; possible business models -- including potential incentives and funding models required to allow for a commercial CCS project. It also covers optimizations of onshore infrastructure, large size CO2 liquefaction and shipping, procurement and operation of CO2 vessels.
bp and Chubu Electric aim to achieve net zero CO2 emissions from their operations by 2050. The Port of Nagoya is the largest port in Japan in terms of cargo volume, accounting for 3% of Japan's total CO2 emissions and has set a target to reduce its emissions by 46% by FY2030 compared to FY2013.
Tangguh at a glance
Tangguh is the largest natural gas producer in Indonesia, with an average LNG production of 2.1 billion cubic feet per day from its three-train operation, accounting for about one-third of the nation's gas production.
bp operates Tangguh LNG with 40.22% participating interest, with partners MI Berau B.V. (16.30%) CNOOC Muturi Limited (13.90%), Nippon Oil Exploration (Berau), Ltd. (12.23%), KG Berau Petroleum Ltd (8.56%), KG Wiriagar Petroleum Ltd (1.44%), Indonesia Natural Gas Resources Muturi Inc. (7.35%).
The Tangguh UCC/CCUS project, operated by bp is the most advanced CCUS project in Indonesia, with ongoing FEED and early works, and project sanction is being progressed.
With its ca 1.8 Gt of CO2 in ultimate storage capacity, Tangguh is well-positioned to become the country’s first CCS hub for domestic and international emitters.