The Tangguh Train 3 Project Is A Strategic Investment Step To Achieve National Energy Sovereignty
Tough illustration train 3 (Photo: antara)

JAKARTA President Joko Widodo inaugurated the Tangguh Train 3 Gas Refinery project some time ago. This project is the development of the LNG Refinery in Tangguh Gas Field in Bintuni Bay, West Papua. The Liquified Natural Gas (LNG) liquid natural gas refinery is the largest gas factory in Indonesia with an investment value of IDR 72.45 trillion.

Based on data from the Ministry of Energy and Mineral Resources, the realization of natural gas utilization in Indonesia until July 2022 is 3,716 British thermal units per day (BBtud) or 68.6 percent and is dominated by the Industrial sector. This figure continues to increase from previous years.

Meanwhile, gas exports reached 1,697 BBtud or 31.34 percent. Thus, the additional LNG production capacity of 11.4 million tons per year, the contribution of the LNG Tangguh refinery to the national energy supply is projected to continue to increase. Later, the production results of the Refinery Train 3 of around 60 percent will also be prioritized for the needs of power plants owned by PT PLN Persero and the rest will be exported.

Special Staff for the Improvement of National Entrepreneurs of the Ministry of Investment/BKPM RI M. Pradana Indraputra stated that Tangguh Train 3 is an important step for Indonesia towards energy sovereignty. He also said that this is proof of President Jokowi's seriousness in encouraging the ESDM sector in Indonesia.

"With an LNG production capacity of 11.4 million tons per year, the operation of Tangguh Train 3 is expected to be able to support the government's target of realizing national energy security. Through this liquid natural gas processing facility, Indonesia can utilize gas produced for domestic needs while increasing the value of energy exports," he added, citing a written statement, Sunday, December 3.

The LNG Tangguh project is a LNG production and sale project that has been realized in the form of joint ventures between British Petroleum, the Government of Indonesia, Contractors and especially the local people of West Papua. Gas reserves were discovered by Atlantic Richfield Co. (ARCO) in the mid-1990s. 100 percent ownership of BP Berau Ltd. is responsible for the operation of Tangguh LNG.

Furthermore, BP owns 40.22 percent of its share ownership in Tangguh LNG thanks to other companies involved in the development of the project, BP Muturi Holdings BV, BP Wiriagar Ltd, and Wiriagar Overseas Ltd.

"Energy sovereignty is not only a matter of energy security, but also how to utilize natural resources for the welfare of the people. Therefore, a joint commitment is needed to realize Indonesia's big vision of achieving energy independence. I am optimistic that this project can encourage the creation of a wider chain of added value gas, both for the petrochemical industry, fertilizers, and others. This is in line with the government's efforts to advance the downstream oil and gas industry to increase the country's foreign exchange," said the staff of the youngest Investment Minister.

In addition to the increase in production terms, Tangguh Train 3 is also expected to encourage increased added value of domestic natural gas through integrated downstream projects. Some of these downstream projects include the ubadari Carbon Capture, Utilization, and Storage (CCUS), blue ammonia and Natural Gas Asp Kido Merah (AKM) projects.

"These projects are expected to create new economic diversifications besides that it can also integrate the added value upstream and downstream in the national energy industry," added Dana, his nickname.

Thus, from investment perspectives, Pradana is optimistic that this project can provide great benefits for the economy and the welfare of the Indonesian people, especially in Papua. This project reflects the harmonious cooperation between the government and investors in encouraging energy transformation. Direct Train 3 not only focuses on increasing energy capacity, but also on targeting the creation of new jobs through downstream natural gas in the country," he concluded.

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