President Susilo Bambang Yudhoyono’s three-day visit to London early this month, followed by the announcement of the approval of the plan of further development (POFD) of the Tangguh liquefied natural gas (LNG) plant’s Train 3, has raised eyebrows of those critical of foreign investments.
With the coming of the third train, estimated to require US$12 billion in investment, the plant will see an increase in production capacity from 7.6 million tons per annum (mtpa) to 11.4 mtpa. The announcement was made directly by British Prime Minister David Cameron after a bilateral talk with President Yudhoyono.
British oil giant BP holds a majority share (37.16 percent) in the plant, which is located in Bintuni Bay, West Papua — an area with total proven gas reserves of 14.4 trillion cubic feet (tcf).
The third train is estimated to go online in 2018, but only 40 percent ...