Tangguh environmental study approved
Tangguh environmental study approved
The Jakarta Post, Jakarta
The Minister of Environment has approved an environmental
impact study for the Tangguh LNG project, owned by a consortium
led by London-based BP PLC, to be conducted in Papua.
BP Migas, the country's oil and gas upstream authority, said
in a statement on Friday that the study contained an analysis on
the environmental and social impact of the giant project on
surrounding communities as well as the consortium's strategies to
oversee and manage any impact it would have on them.
The study, which was approved on Thursday, was the result of a
two-year study that involved consultations with the local
community.
According to the statement, the Tangguh LNG project is the
first in the country to implement Decree No. 08/2000, issued by
the head of the Environmental Impact Management Agency (Bapedal),
which obliges project owners to consult local communities on
their plans.
The project was also the first to involve representatives of
local communities to disseminate information on the environmental
impact study to locals, the statement said.
In working on the study, BP also sought input from or
cooperated with various members of the public in Papua, formerly
known as Irian Jaya, including the local government and non-
governmental organizations (NGOs).
During consultations, locals voiced their concern that the
project could lead to mass migration, disrupt local traditions
and create conflict. They also asked that the project give work
to locals.
In response to the worries and request, BP and its partners
outlined in the study several strategies and special programs,
including a diversified growth strategy, workforce resolution
procedures, conflict resolution procedures and a social
responsibility policy.
The Tangguh LNG plant is located at Berau Bintuni Bay, which
contains 14.4 trillion cubic feet of proven gas reserves.
BP and its consortium partners, including Mitsubishi, Nippon
Oil Exploration, British Gas, Kanematsu Corp. and LNG Japan, has
planned to build two LNG trains in the plant with a combined
capacity of seven million tons per year.
Chinese state-owned firm China National Offshore Oil
Corporation (CNOOC) has signed a contract to buy 2.6 million tons
per year for China's province of Fujian. Following the deal,
CNOOC bought a 12.5 percent stake in the project.
The Fujian contract will generate a total of US$8.5 billion in
sales revenue to the government throughout the contract period of
25 years, while the two trains, if running at full capacity, will
generate $21 billion in revenue.
Analysts have said that Papua, which is entitled to 70 percent
of the government's revenue from the project, will receive
billions of dollars throughout the project.