All about Tangguh LNG
What is Tangguh LNG?
Helfia Nil Chalis - July 2012
Tangguh LNG is a name of an LNG Site located at Bintuni Bay, West Papua, Indonesia. It is an LNG manufacturing company operated by BP Berau Ltd a subsidiary of BP (previously known as British Petroleum). LNG is an abbreviation of Liquefied Natural Gas. It is literally natural gas which is cooled to a temperature of 160 deg C below zero to change its phase from gaseous form to liquid. A temperature below 100 deg C is also called cryogenic temperature. At this temperature LNG is at quite stable in liquid form.
Why should we liquefy natural gas? Why can't we leave it in its original state? Yes, of course you can. However, if you need to transport it across the ocean, how big is the vessel you need to bring same volume of gas. By liquefying the gas, we reduce the volume by 600 times smaller. This saves a lot of transportation costs. Why can't we transport the gas by pipeline? Yes you can and in fact it is more economical for short distances, but it becomes too expensive for long distances.
Tangguh LNG assets are own by Government of Indonesia. BPMIGAS (now SKKMIGS) is the body which represents GOI in managing the assets. BP Berau Ltd is the production sharing contract appointed by BPMIGAS (SKKMIGAS) to operate Tangguh LNG. The plant was built in 2005 - 2007. Commissioning and start-up of Train-1 and Train-2 were completed in 2009. Ramping-up production was started in 2010 with a lot of challenges. Tangguh LNG reaches name plate capacity in early 2012.