Enhanced gas recovery/carbon capture, utilization and storage
- The investment for the project is expected to unlock around 3 trillion cubic feet of additional gas resources
- The project features Indonesia’s first at-scale enhanced gas recovery through carbon capture, utilization, and storage (CCUS), aiming to sequester around 15 million tonnes of CO2 in its initial phase and potentially more considering the large CO2 storage capacity of area
The UCC project, which comprises the Ubadari gas field development, enhanced gas recovery through carbon capture, utilization and storage (CCUS) and onshore compression, expands and utilizes existing infrastructure at the Tangguh LNG facility in Papua Barat, Indonesia. Production at the Ubadari field is expected to start in 2028.
Tangguh CCUS aims to be the first CCUS project developed at scale in Indonesia, with potential for sequestering around 15 million tonnes of CO2 from Tangguh’s emissions in its initial phase.
The UCC project has been designated as a national strategic project by the Government of Indonesia and represents the continued development of Tangguh, following the addition of the third LNG train which began operation in 2023 and brought total plant liquefaction capacity to11.4 million tonnes per year.
An aerial view of Tangguh LNG plant
Helping Indonesia’s energy transition
As Indonesia’s largest domestic gas producer, bp and the Tangguh LNG joint venture partners support the Government of Indonesia’s target to achieve 12 BSCFD (billion standard cubic feet per day) of gas production by 2030 and at the same time achieve carbon emissions reduction target under the nationally determined contribution (NDC) by 2030.
As Indonesia transitions to low-carbon energy amidst an increased energy demand for the economic growth, natural gas can play a two-fold role in Indonesia’s energy mix. First, it is a lower-carbon alternative; second, it’s a reliable energy source for power generation.
Tangguh LNG EGR/CCUS as part of Tangguh Project is also closely aligned with the Government of Indonesia’s agenda within the G20, where Indonesia – which holds this year’s G20 presidency – has put forward sustainable energy transition as one of its three priority issues for G20 members to embrace and accelerate. It is also in line with bp and the Tangguh LNG joint venture’s aims to decarbonize gas operations.
Creating social and economic impact
Project UCC brings business opportunities for national and local companies, local small-scale industries, and job opportunity for local workforce.
Small-scale industries surrounding the Tangguh LNG site will get opportunities as well to supply goods and services via contract and employment. As of 2020, the total supply of community products to Tangguh LNG catering reached 433 metric tonnes or equivalent to IDR 8.8 billion. This may increase when Project UCC is in construction.
Revenue generated from this project will contribute to the state purse to support the development programs for the Government of Indonesia, Papua Barat province, and particularly Teluk Bintuni Regency.
Making Tangguh one of the world’s lowest carbon intensity LNG plants
Tangguh LNG EGR/CCUS works by separating the reservoir CO2 from produced gas and reinjecting it back to the Vorwata gas field for sequestration and enhanced gas recovery. The total emissions reduction is up to 30 million tonnes of CO2 equivalent by 2035 while up to 300 BSCF (billion standard cubic feet) of natural gas is produced as additional LNG cargoes for the domestic and international markets.
This would make Tangguh one of the lowest carbon intensity LNG plants in the world.
What is CCUS?
Carbon capture, utilization and storage (CCUS) refers to a suite of technologies that can play a critical role in meeting global energy and climate needs. CCUS involves the capture of CO2 from large point sources and transportation by pipeline, ship, rail or truck to be used in a range of applications, such as enhanced gas recovery (EGR), which traps CO2 for permanent storage. CCUS technologies will play an important role in meeting net zero targets, including being one of few solutions to tackle emissions from heavy industry.
Schematic diagram of Vorwata CCUS