Tokyo, Japan –JGC Holdings Corporation, through its subsidiary P.T. JGC Indonesia, has been awarded an Onshore Engineering, Procurement, Construction, and Installation (EPCI) contract for the Tangguh UCC Project in Papua Barat Province, Indonesia. Commissioned by BP Berau Ltd., operator of the Tangguh LNG Plant, the contract is valued at approximately $2.4 billion, underscoring JGC’s prominent role in large-scale decarbonization projects.
The Tangguh UCC Project is part of the broader Tangguh LNG EGR/CCUS initiative, which integrates the development of the Ubadari gas field, enhanced gas recovery (EGR) through carbon capture, utilization, and storage (CCUS), and onshore compression facilities. JGC’s scope under this contract includes the design, construction, and installation of advanced compression systems at the Tangguh LNG Plant.
The initiative is aimed at separating CO2 from produced natural gas and reinjecting it into the offshore Vorwata gas field. This approach not only sequesters carbon but also boosts gas production, aligning with global efforts to balance increasing energy demand with decarbonization goals.
JGC has established itself as a global leader in carbon capture and storage (CCS) and carbon capture, utilization, and storage (CCUS) technologies. Since constructing its first CCS facility in Algeria in 2004, JGC has continued to innovate in this field with notable projects in Australia and Japan.
This latest contract builds on JGC’s strong reputation, leveraging its decades-long expertise to address the dual challenges of rising energy demand and the urgent need for decarbonization. According to Masayuki Sato, Representative Director, Chairman, and CEO of JGC Holdings Corporation, “Our participation in the Tangguh UCC Project reinforces our commitment to providing advanced solutions that support the global energy industry’s transition toward a sustainable future.”
The Tangguh UCC Project represents a significant step for Indonesia’s energy sector, placing the country on the map as a key player in deploying CCUS technologies. BP Berau Ltd., in collaboration with JGC and other stakeholders, is pioneering efforts to establish Southeast Asia as a leader in carbon management initiatives.
The project aligns with Indonesia’s commitment to reducing greenhouse gas emissions as part of its Nationally Determined Contributions (NDCs) under the Paris Agreement. The Tangguh LNG Plant, already a critical energy supplier for domestic and export markets, will now also serve as a model for integrating sustainable practices in large-scale industrial operations.