BP Invests $7B in Indonesia Gas With First Carbon Capture Tech

Project Overview - BP and its partners have made a final investment decision for the $7 billion Tangguh Ubadari CCUS Compression (UCC) project in Papua Barat, Indonesia [1] - The project is expected to unlock approximately 3 trillion cubic feet of additional gas resources, supporting BP's strategy to meet Asia's growing energy demand and advance low-carbon commitments [1] Technology and Infrastructure - The Tangguh UCC project will feature Indonesia's first large-scale implementation of carbon capture, utilization, and storage (CCUS) technology, aiming to sequester 15 million tons of CO2 in its initial phase [2] - The project includes the development of the Ubadari gas field and enhancements to the existing Tangguh LNG facility, which has a liquefaction capacity of 11.4 million tons per year [2] Production Timeline - Production from the Ubadari field is expected to begin in 2028, reinforcing the region's role in providing sustainable energy solutions [3] Strategic Significance - BP CEO Murray Auchincloss highlighted the project's dual significance: unlocking substantial gas resources and incorporating CCUS technology to enhance gas recovery [4] - BP leverages over 55 years of experience and strong local partnerships in Indonesia to drive this groundbreaking development [4] Financial and Strategic Alignment - The Tangguh UCC project aligns with BP's disciplined financial framework, meeting its return hurdle rates and reinforcing its focus on value-driven investments [5] - BP continues to lead in leveraging technology and innovation to address the dual challenge of energy security and decarbonization, setting a benchmark for future projects in the region [5] Industry Insights - Smart Sand, Inc (SND) is a low-cost producer of high-quality Northern White frac sand, ideal for hydraulic fracturing and industrial applications, with growing demand expected due to sustained oil and gas market demand [7] - FuelCell Energy (FCEL) offers low-carbon energy solutions, producing power using flexible fuel sources like biogas, natural gas, and hydrogen, playing a crucial role in the energy transition [8] - Nine Energy Service (NINE) provides onshore completion and production services for unconventional oil and gas resource development, operating across key basins in the US and Canada, with anticipated growth due to sustained demand for oil and gas [9]