BP expects Tangguh LNG domestic deliveries to rise to 89 cargoes in 2026

British oil major BP expects to supply 89 cargoes from the Tangguh LNG project to Indonesia's domestic market in 2026, up 4.7% year over year, Head of Country BP Indonesia James Tehubijuluw told lawmakers in a public hearing on June 3.

The Papua-based facility continues to provide about one-third of the country's liquefied natural gas needs. The company supplied 85 cargoes to Indonesia's domestic market in 2025, equivalent to about 82% of national LNG demand, according to Tehubijuluw.

"For 2026, we project supplying about 89 cargoes, equivalent to about 71% of Indonesia's domestic LNG demand," he said, without elaborating on how exactly the company will increase the Tangguh LNG domestic deliveries.

Tehubijuluw said Tangguh's gas-lifting target for 2026 is 1.49 billion cubic feet/day, while actual lifting stood at the same level as of April 30, indicating the project is on track with its annual work plan agreed with upstream regulator SKK Migas. BP is separately targeted to produce 1.55 Bcf/d of gas and 8,027 barrels/day of condensate this year, according to SKK Migas data during the hearing.

Indonesia grappled with tightening LNG availability last year. Domestic gas output has come under pressure from declining production at several mature fields, while demand continues to rise. State utility PLN expects to require 103 LNG cargoes in 2026, up from about 90 cargoes last year. The company holds long-term contracts with BP covering 62 cargoes, leaving a supply gap of about 41 cargoes.

However, Energy and Mineral Resources Minister Bahlil Lahadalia said in May that Indonesia would not reduce gas export quotas in 2026, providing greater certainty for producers and buyers after concerns over tighter domestic supply prompted the government to reschedule some LNG exports last year.

One of Tangguh's trains underwent a scheduled turnaround in May, and the maintenance program was completed on May 31, Tehubijuluw said.

"All three trains are now operating, and we do not expect any issues in the coming months," Tehubijuluw said, adding that the company remained on track to meet its agreed production and lifting targets.

The Tangguh LNG facility comprises three liquefaction trains. Trains 1 and 2 began operations in 2009, while Train 3 reached 100% operational capacity in April 2024 after starting up in October 2023.

BP said last year that LNG production from Tangguh was expected to decline by about 10.1 standard cargoes in 2026 due to a planned maintenance shutdown at Train 1, the oldest of the facility's three liquefaction trains. The company had projected total LNG output of 180.4 standard cargoes in 2025.

BP's total LNG cargo output for this year, for both domestic and export markets, is unavailable.

Tangguh LNG has a production capacity of 11.4 million metric tons/year, equivalent to about 180 cargoes annually. Since starting operations, the project has shipped more than 2,000 LNG cargoes, Tehubijuluw said.

BP said Tangguh's cost recovery allocation stands at about $740 million, while the project's contribution under the government's 2026 state budget assumptions is estimated at about $2.13 billion, he added.

UCC project

Tehubijuluw also said that the construction progress of the Ubadari, Carbon Capture and Storage, Compression project had reached about 40%.

"We are also developing one of the government's National Strategic Projects, namely the UCC project. Construction progress has now reached about 40%," he said.

BP took a final investment decision on the roughly $7 billion UCC project in 2025, with production from the Ubadari field expected to begin in 2028. The development is intended to help sustain long-term gas supply to Tangguh LNG while incorporating carbon capture and storage technology, Platts has reported.

Tangguh LNG is one of Indonesia's largest gas projects and a key part of BP's upstream portfolio in Asia. BP operates Tangguh LNG with a 40.22% stake, along with partners MI Berau BV (16.30%), CNOOC Muturi Ltd. (13.90%), Nippon Oil Exploration (Berau) Ltd. (12.23%), KG Berau Petroleum Ltd. (8.56%), KG Wiriagar Petroleum Ltd. (1.44%) and Indonesia Natural Gas Resources Muturi Inc. (7.35%).