bp and Chubu Electric sign MoU to evaluate CO2 storage in Tangguh, Indonesia

BP Berau Ltd (bp), the Operator of Tangguh LNG and acts on behalf of Contractors under Tangguh PSC (namely MI Berau B.V., CNOOC Muturi Limited., Nippon Oil Exploration (Berau) Limited, KG Berau Petroleum Ltd., Indonesia Natural Gas Resources Muturi, Inc., KG Wiriagar Petroleum Ltd.) and Chubu Electric Power Co., Inc. ("Chubu Electric") today signed a Memorandum of Understanding ("MoU") for the feasibility study of an international CCUS value chain from Port of Nagoya, Japan, using CO2 storage at the Tangguh(Note) field in Teluk Bintuni, Papua Barat, Indonesia.
(Note)Tangguh is the largest gas producer in Indonesia, accounting for approximately 20% of the country's natural gas production. The Tangguh CCUS project operated by bp is the most advanced CCUS project in Indonesia with a development plan that has received approval from the Government of Indonesia in 2021, ongoing FEED work and planned project sanction in the near future. Holding ca 1.8 GtCO2 in ultimate storage capacity, Tangguh is well-positioned and has a tremendous potential to become the country's first CCS hub for domestic and international emitters. 

bp p.l.c., the ultimate parent company of bp, and Chubu Electric aim to achieve net zero CO2 emissions from their operations by 2050.

The two companies are working to support the decarbonisation of the area around the Port of Nagoya, as a part of the scopes of Memorandum of Understanding signed in February 2023 for the decarbonisation of Japan and the wider Asian region.

The Port of Nagoya is the largest port in Japan in terms of cargo volume, accounting for 3% of Japan's total CO2 emissions and has set a target to reduce its emissions by 46% by FY2030 compared to FY2013.

In order to contribute to the achievement of such target, affiliate of bp and Chubu Electric are conducting studies on the capture, aggregation, utilization and transport of CO2 to overseas CO2 storage sites for the realisation of CCUS (as announced on February 3, 2023).

Under the MoU signed today, the two companies will assess the feasibility of CO2 capture, aggregation, and liquefaction at Nagoya Port for export with transport via CO2 shipping for injection and CO2 storage in a geological store within a CO2 storage hub at Tangguh in Indonesia.

Kathy Wu, BP Regional President Asia Pacific, Gas & Low Carbon Energy, commented: bp p.l.c. and Chubu have a long-standing relationship, and this MoU signifies our continued cooperation to support Indonesia's and Japan's net zero aims through CCUS initiatives. 

Hiroki Sato, Division CEO of Global Business at Chubu Electric, commented: It is significant milestone for the Nagoya Port CCUS project to be able to specify and assess the storage site of Tangguh in our feasibility study. Tangguh is expected to have considerable storage volume. We will collaborate with bp on solid assessment of Tangguh as a potential storage site, with the aim of starting the project in 2030 in align with the Japanese government's target.　

bp and Chubu Electric will combine bp p.l.c's experience in developing large-scale CCS projects and Chubu Electric's knowledge as a utility in the Chubu region to further explore the promotion of decarbonisation solutions in Japan and the wider Asian region.

BP Regional President Asia Pacific, Gas and Low Carbon Energy Kathy Wu
Chubu Electric Deputy Division CEO Hisashi Kishi
provided by Indonesia CCS Center

<Reference 1: Tangguh Project Overview>

Location	Bintuni Bay, Papua Barat Province, Indonesia
Commencement of production	2009
Production capacity	7.6 million tonnes of LNG a year（3.8 million tonnes x 2 trains） After the operation of 3rd train, which is currently under construction, the annual production capacity will increase to 11.4 million tonnes (3.8 million tonnes x 3 trains).
Tangguh facts	Tangguh is the highest-producing gas field in Indonesia, contributing ~20% of national gas production, recording a total investment of ~US$10 billion and safely delivering >1,500 cargoes. By the time Train 3 is operational, Tangguh's three-train business would contribute about 35% of national production
Shareholders	Bp (Operator) 40.22% MI Berau B.V.16.30% CNOOC Muturi Ltd.13.90% Nippon Oil Exploration (Berau) Ltd.12.23% KG Berau Petroleum Ltd 8.56% Indonesia Natural Gas Resources Muturi Inc.7.35% KG Wiriagar Petroleum Ltd. 1.44%.

<Reference 2: Tangguh LNG Project Location Map>

Source: bp