British oil giant
) has proposed to award an onshore front-end engineering and
design (FEED) contract for a third liquefaction train for the
Tangguh liquefied natural gas (LNG) project in Bintuni Bay, West
Papua, Indonesia, over the coming months.
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The project is estimated to cost about $12 billion. The award is
slated to be given out by the end of the current quarter. Final
investment decision for the project is anticipated to be made in
2015, while the first LNG shipment is planned for 2019.
Per the project proposal, BP intends to build a third train with
a capacity of 3.8 million tons per year at the site. Currently,
the two trains in operation generate about 7.6 million tons per
year of LNG.
As the operator of the Tangguh LNG project, BP holds a 37.16%
interest. The company's operation in Indonesia dates back to over
35 years. Presently, it is one of the largest foreign investors
with cumulative investment of over $5 billion to date.
BP plc is one of the world's largest energy companies, providing
its customers with fuel for transportation, energy for heat and
light, retail services and petrochemical products. Previously,
the company used to report earnings through three segments:
Exploration and Production, Refining and Marketing, and Other
Businesses and Corporate.
The company is offloading its non-core upstream properties while
creating a portfolio with potentially stronger growth from a
smaller base. Additionally, BP's position in the Woodford,
Haynesville, Fayetteville, Eagle Ford and Utica shale plays, in
association with its vast resource base and profound knowledge in
unconventional gas, will aid its natural gas operations going
BP carries a Zacks Rank #2 (Buy). Other stocks worth considering
in the oil and gas sector include
NGL Energy Partners LP
Cheniere Energy Partners L.P.
Pembina Pipeline Corporation
). All these stocks hold a Zacks Rank #1 (Strong Buy).