Saipem announced that it has been awarded two new E&C contracts for onshore and offshore work on the Tangguh LNG expansion project.
The first award is for the engineering, procurement, construction and installation of offshore facilities, consisting of two unmanned platforms and subsea pipelines “in accordance with the requirements of SKK Migas”, Indonesia's upstream regulator, as it will “contribute to local content enhancement, including through its own Karimun fabrication yard.”
The second contract for the construction of an onshore LNG process train with a liquefaction capacity of 3.8 MMT/Y, utilities, offsites, an LNG jetty and associated infrastructure, has been awarded to CSTS, a joint operation led by Indonesian Tripatra with Chiyoda, Saipem and Suluh Ardhi Engineering, the Italian company said in its statement. “Completion of the projects is expected in 2020.”
Updates:

On 15-Sep-2016, GE Oil & Gas announced that it has been awarded a contract to supply gas turbine-driven compressors for Tangguh LNG expansion project. GE has already supplied the equipment for the initial two liquefaction trains at the facility and the new equipment will be ready for shipment to Indonesia in mid-2018, the company said, adding that it will also supply heat recovery steam generator for each of the two string, the low pressure/medium pressure mixed refrigerant (MR) string and the propane/high-pressure MR string.

Backgrounds:

On 1-Jul-2016, shareholders of BP-led Tangguh PSC announced that the final investment decision (FID) has been approved to development of the Tangguh expansion project (T3).
“The decision follows the government of Indonesia’s approval of the Plan of Development II in 2012 and issuance of the project’s environmental and social impact assessment (AMDAL) and environmental permit in 2014.”
The expansion project will add a third LNG process train (Train 3) with 3.8 MMT/Y of production capacity to the existing facility, bringing total plant capacity to 11.4 MMT/Y. “The project also includes two offshore platforms, 13 new production wells, a new LNG jetty, and supporting infrastructure. The commencement of production is expected in 2020.”
75% of the Train 3 annual LNG production sold to the Indonesian state electricity company PT. PLN, the project’s shareholders said, adding that the remaining volumes are under contract to Kansai Electric.
“Awards for the project’s key engineering, procurement and construction (EPC) contracts are expected in the third quarter with construction to begin thereafter.”
Earlier, Indonesia’s ministry of environment announced that it has approved the environmental and social impact assessment, known as AMDAL, for the Tangguh LNG expansion project. The AMDAL also includes outlines the role of the local administration and central government.
The expansion project (T3), expected to cost $12 billion, would add a third train, boosting total project capacity to 11.4 MMT/Y.
BP said that other key government approvals still in progress are required to continue with the planning, design, and procurement of the expansion project. The company received approval for expansion plans from Indonesia’s ministry of energy in 2012.
“We remain hopeful that they will be received soon,” said Christina Verchere, BP regional president for Asia-Pacific.