Market Brief

Natural Disasters Cited as Significant Factor in Indonesian Project Delay, an Industrial Info Market Brief

Large-scale natural disasters in Indonesia were cited as a major reason for BP Indonesia's Tangguh 3 liquefied natural gas (LNG) project delay. According to several news agencies such as Reuters and Liputan, BP Indonesia is moving the target deadline of its Tangguh 3 LNG project from 2020 to the third quarter of 2021 due to various reasons, which include natural disasters like the earthquake in Palu, eruption of Mt. Krakatau and the tsunami in Sunda Strait. All these large-scale natural disasters that occurred last year were deemed to have affected the project through logistics constraints of construction materials. Another natural constraint faced is the sedimentation in the waters of Bintuni Bay, West Papua, where the project is located. Due to sedimentation, carrier ships are not able to easily dock, delaying the delivery of material shipments.

Released Monday, July 29, 2019