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Energy

BP's Tangguh LNG Train 3 in Indonesia delayed again due to pandemic

FILE PHOTO: The logo of BP is seen at a petrol station in Kloten, Switzerland October 3, 2017. REUTERS/Arnd Wiegmann/File Photo

JAKARTA (Reuters) - The start of operations of Train 3 at BP's BP.L Tangguh LNG plant in Indonesia is set to be pushed back again due to labour restrictions implemented as a precaution during the coronavirus pandemic, the company and a regulator said.

Train 3 is now expected to start production in the fourth quarter of 2021, Dwi Soetjipto, chairman of upstream oil and gas regulator, SKK Migas, told a parliamentary hearing on Wednesday.

Meanwhile, Moektianto Soeryowibowo, head of country at BP Indonesia, told Reuters that due to the restriction of workers at the site as a precaution during the pandemic Train 3 would be delayed to early 2022.

Completion of the project was previously slated for the third quarter of 2021, which already marked a delay by a year from its initial target after natural disasters had disrupted logistics.

Moektianto said that because of the pandemic starting in March the number of workers had been limited to around 6,000 to ensure the implementation of health protocols.

“BP continues to coordinate with SKK Migas in efforts to finish the Tangguh Train 3 project safely and within the planned timeline,” he said, noting the number of workers had now been increased in stages back to around 7,700.

Susana Kurniasih, a SKK Migas spokeswoman, said the number of workers before the pandemic had been around 13,000.

Dwi told parliament that Train 3 would increase the output capacity at Tangguh by 40 cargoes in the first year of completion, and by 60 cargoes in the following years.

Reporting by Agustinus Beo Da Costa and Fransiska Nangoy; Writing by Fransiska Nangoy; Editing by Ed Davies

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