The expansion project will add 3.8 million tons per annum (mtpa) of liquefaction capacity to the existing Tangguh LNG facility located on the southern shores of Bintuni Bay in Teluk Bintuni Regency of Papua Barat Province.

It will add third train to the liquefaction facility, increasing the total capacity to 11.4mtpa.

ADB private sector operations deputy director general Christopher Thieme said: "Expanding the Tangguh LNG facility is crucial for Indonesia to meet its increasing energy demand.

“The project will also support the country’s goal of developing a more sustainable energy mix in a continuous effort to achieve energy security while reducing carbon emissions.”

Scheduled to commence production in 2020, the expansion project also involves development of two offshore platforms, 13 new production wells, a new LNG jetty, and supporting infrastructure.

Commissioned in 2009, the Tangguh LNG facility consists of offshore gas production facilities supplying two 3.8mtpa liquefaction trains.

Indonesia's state owned electricity firm PLN (Persero) has agreed to purchase 75% of the LNG production from the Train 3 while the remaining volumes are sold to Kansai Electric Power Company.

The Tangguh production sharing contract partners also include KG Berau Petroleum and KG Wiriagar Petroleum with 10%, Indonesia Natural Gas Resources Muturi 7.35%, and Talisman Wiriagar Overseas 3.06%.

Image: The Tangguh expansion project will help Indonesia to meet its increasing energy demand. Photo: courtesy of The Asian Development Bank.