British multinational oil and gas company, BP Plc, will allocate 230 million mmscfd of gas per day through BP Tangguh Ltd for domestic supply.
Minister of Energy and Mineral Resources, Jero Wacik, said the deal signing will take place on Thursday, May 24.
Wacik said the gas allocation will be used to activate a power plant in Bintuni, Papua. Half of the supplies will be channeled to a Floating Storage Regasification Unit (FSRU) in West Java and Lampung.
Director general of Evita Legowo, said the Tangguh field may provide natural gas (for Bintunio) while the FSRU of West Java and will get LNG.
BP is also committed to allocate $11 billion of investment in Indonesia. According to BP Migas deputy of Planning, Haposan Napitupulu, the investment will be partly used to develop Train 3 in the Tangguh LNG field.
“The Train 3 needs $3.8 billion while the remaining fund is allocated for other sectors,” he said.