JGC wins Indonesian LNG project

BP has selected a consortium including Japan’s JGC Corp. to develop its Tangguh liquefied natural gas project in the remote Indonesian province of Papua. BP will pay the consortium – which also includes US firm Kellog Brown & Root and local company PT Pertafenikki Engineering – USD 1.4 billion to develop two LNG processing plants, the European energy company has said. The consortium beat two other bids: one led by Technip-Coflexip SA with Chiyoda Corp., and the other by Bechtel Group Inc. The Tangguh development, which would produce LNG for export to China and other Asian markets, is Indonesia’s largest new investment. BP expects to spend around USD 2.6 billion on the development, including the contract just awarded. BP plans to begin construction at Tangguh next year, with the first gas due to be piped out around 2007. The fields will eventually be able to produce around 7 million metric tons of LNG a year.

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