U.S.-headquartered energy technology giant Baker Hughes has landed a long-term deal with BP, a UK-headquartered energy player, for work on a liquefied natural gas (LNG) plant in Papua Barat, Indonesia.
Baker Hughes’ new 90-month service agreement for the BP-operated Tangguh LNG project covers spare parts, repair services, and field service engineering support for critical turbomachinery at the facility, including heavy-duty gas turbines, steam turbines, and compressors for three LNG trains, helping to ensure its continued reliable operation.
While explaining that the project supports Indonesia’s energy future, the U.S. player, which has a long-standing relationship with the UK firm at the Tangguh LNG project since 2009, was hired in 2024 to supply additional critical power and compression systems for BP’s Tangguh UCC project, for which a final investment decision (FID) was made in November 2024. Saipem recently embarked on construction activities for the project.
This project aims to unlock approximately 3 trillion cubic feet (tcf), or 84.9 billion cubic meters (cbm), of additional gas resources, extending gas feed to the oil major’s existing LNG facility through the start-up of the Ubadari gas field , which is anticipated in 2028. Baker Hughes is collaborating with PT Imeco Inter Sarana as its local consortium partner to meet the local content requirements for the latest agreement.
Tiffany Pitts , Vice President of Gas Technology Services at Baker Hughes, underlined: “This long-term service agreement with bp for Tangguh LNG is a testament to our continued partnership and commitment to progressing energy development in Indonesia. Our advanced technology and expertise will help ensure the optimal performance of the Tangguh facility, which is crucial for meeting the region’s energy demands.”
According to Baker Hughes, the Tangguh LNG facility is a cornerstone of Indonesia’s energy strategy, playing a vital role in supplying safe and reliable energy to the Asia-Pacific region. This deal allows the firm to contribute to the sustained performance and availability of the plant’s critical turbomachinery, seen as essential for LNG operations.
The agreement follows the U.S. player’s announcement about expanding its existing service capability in Asia Pacific to address the region’s energy expansion and transition needs. Recently, the firm took action to buy all outstanding shares of Chart’s common stock for $210 per share in cash, equivalent to a total enterprise value of $13.6 billion.