Saipem has commenced construction activities for BP and its partners’ Tangguh Ubadari, Carbon Capture, Utilisation, and Storage (UCC) project at its Karimun fabrication yard in Indonesia.
The first steel cutting ceremony marked this initiation, attended by representatives from BP Indonesia, local and national government bodies, and Saipem’s management team.
Located in Papua Barat province, Indonesia, the Tangguh UCC project aims to develop the Ubadari gas field and enhance gas recovery through carbon capture technology. It is set to increase gas acquisition by utilising existing infrastructure at the Tangguh liquefied natural gas (LNG) facility.
The project plans to unlock approximately three trillion cubic feet of natural gas resources from the offshore Ubadari field.
Saipem is responsible for engineering, procurement, construction, installation, and commissioning within the project. This includes constructing two wellhead platforms, a CO2 reinjection platform, and about 90km of related pipelines and cables.
The Karimun Yard, Saipem’s largest fabrication centre globally, is said to play a crucial role in this development.
The UCC project holds national strategic significance in Indonesia. It follows the expansion of Tangguh LNG with the third LNG train that started operations in 2023, raising total liquefaction capacity to 11.4 million tonnes annually.
The Ubadari field production is projected to commence in 2028. It aims to be the first large-scale CCUS initiative in Indonesia by potentially sequestering around 15 million tonnes of CO2 from Tangguh’s emissions initially.
In November 2024, BP and its partners confirmed a $7bn investment in the UCC project. BP operates Tangguh LNG with a 40.22% interest alongside partners including MI Berau, CNOOC Muturi, Nippon Oil Exploration (Berau), among others.
The development involves extending the gas feed to Tangguh LNG and reducing operational emissions through CO2 sequestration. Upon completion, it will feature three injection wells, an offshore injection platform, an offshore CO2 pipeline, and onshore facilities dedicated to CO2 removal and processing.
