Indonesia’s Tangguh UCC Project Reaches Final Investment Decision (FID)

November 22, 2024
Mitsubishi Corporation
INPEX CORPORATION
JX Nippon Oil & Gas Exploration Corporation
MITSUI & CO., LTD.
LNG JAPAN CORPORATION
Japan Organization for Metals and Energy Security

We, the joint venture partners of the Tangguh LNG Project led by bp, the project operator, are pleased to announce that we have reached a Final Investment Decision (FID) on the Tangguh Ubadari, CCUS, Compression (UCC）Project (hereinafter “project”), a seven billion US dollar initiative.

The project aims to unlock an additional three trillion cubic feet of natural gas in production volume to play a vital role in the stable energy supply to Asian countries including Japan in the energy transition era.

The project consists of the development of the Ubadari Gas Field, enhanced gas recovery (EGR) through carbon capture, utilization, and storage (CCUS)1, and onshore compressors. The project is expected to begin operation and production in stages from 2028. The project features Indonesia’s first at-scale EGR through CCUS, which will contribute to the deployment of CCUS technology in the country.

1 Technology to reduce greenhouse gas emissions by capturing, utilizing and storing CO2 emissions.　In the project, captured CO2 is used for EGR at the existing gas field.

Reference: About Tangguh LNG

Tangguh LNG, which currently has an annual LNG production capacity of 11.4 million tons, is located in Bintuni Bay in Indonesia’s Papua Barat Province. The project is operated by a consortium led by bp under a production-sharing contract with SKK Migas, Indonesia's upstream oil and gas regulator. The joint venture partners of Tangguh LNG are as follows:

Company/OrganizationParticipating
Interest
bp40.22%

MI Berau

(Mitsubishi Corporation, INPEX CORPORATION)
16.30%

CNOOC Muturi Limited

(China National Offshore Oil Corp - CNOOC)
13.90%

Nippon Oil Exploration (Berau), Limited.

(JX Nippon Oil & Gas Exploration Corporation, Japan Organization for Metals and Energy Security)
12.23%

KG Berau Petroleum Ltd.

(Japan Organization for Metals and Energy Security, MITSUI & CO., LTD., JX Nippon Oil & Gas Exploration Corporation, Mitsubishi Corporation, INPEX CORPORATION)
8.56%
Indonesia Natural Gas Resources Muturi Inc7.35%
KG Wiriagar Petroleum Ltd.1.44%

A bird's-eye view of the Tangguh LNG Terminal

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Location map

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Materiality

Based on the Three Corporate Principles, which serve as MC’s core philosophy, MC has continued to grow together with society by contributing to the sustainable development of society through its business activities while pursuing value creation. MC’s revised “Materiality” was announced in Midterm Corporate Strategy 2024 as a set of crucial societal issues that MC will prioritize through its business activities, towards the strategy’s goal of continuous creation of MC Shared Value (MCSV). Guided by this Materiality, MC will continue to strengthen its efforts towards sustainable corporate growth. Out of the six material issues relating to “Realizing a Carbon Neutral Society and Striving to Enrich Society Both Materially and Spiritually”, this project’s activities particularly support “Contributing to Decarbonized Societies” and “Promoting Stable, Sustainable Societies and Lifestyles”.
Contributing to Decarbonized Societies
Conserving and Effectively Utilizing Natural Capital
Promoting Stable, Sustainable Societies and Lifestyles
Utilizing Innovation to Address Societal Needs
Addressing Regional Issues and Growing Together with Local Communities
Respecting Human Rights in Our Business Operations

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