Wedoany.com Report-Aug. 27, Baker Hughes, a U.S.-headquartered energy technology company, has signed a 90-month service agreement with BP, the UK-based energy firm, for work at the Tangguh LNG plant in Papua Barat, Indonesia. The agreement covers spare parts, repair services, and field service engineering support for critical turbomachinery, including heavy-duty gas turbines, steam turbines, and compressors across three LNG trains. The aim is to maintain reliable operation of the facility.

The Tangguh LNG project has been a cornerstone of Indonesia’s energy development, and Baker Hughes has worked with BP on this project since 2009. In 2024, Baker Hughes was selected to supply additional power and compression systems for BP’s Tangguh UCC project, following the final investment decision in November 2024. Italian engineering firm Saipem has already started construction activities for the expansion.

The new development will bring approximately 3 trillion cubic feet (84.9 billion cubic meters) of additional gas resources online, extending feedstock supply to the existing LNG facility. This includes the planned start-up of the Ubadari gas field, targeted for 2028. Baker Hughes is working with PT Imeco Inter Sarana as a local consortium partner to fulfill local content requirements in Indonesia under the new contract.

Tiffany Pitts, Vice President of Gas Technology Services at Baker Hughes, stated: “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.”

Baker Hughes emphasized that Tangguh LNG plays a central role in Indonesia’s energy strategy, ensuring safe and reliable supply to the Asia-Pacific region. By supporting the availability and performance of the plant’s turbomachinery, the company aims to help sustain the project’s long-term contribution to regional energy demand.

This agreement follows Baker Hughes’ broader strategy to expand its presence in Asia Pacific and enhance service capacity to meet the region’s energy growth and transition requirements. In parallel with its expansion in LNG services, the company recently announced an acquisition deal to purchase all outstanding shares of Chart’s common stock at $210 per share in cash. This transaction values the enterprise at $13.6 billion and reflects Baker Hughes’ efforts to strengthen its portfolio in line with global energy development needs.

The Tangguh LNG plant, with its new expansion and service arrangements, is positioned to play a significant role in supplying energy to Indonesia and neighboring markets, while also providing opportunities for technology collaboration and local industry participation. This long-term service agreement marks another step in Baker Hughes’ ongoing partnership with BP and demonstrates its commitment to ensuring operational excellence in Indonesia’s LNG sector.