(EnergyAsia, August 8 2014, Friday) — BP said it has cleared a “significant milestone” to expand its Tangguh liquefied natural gas (LNG) project after the Indonesian government issued an environmental permit in approving the environmental and social impact assessment for the US$12 billion investment.

The permit, issued by the environment ministry, also outlines the role of the local administration and central government in the BP-led consortium’s proposed construction of a third 3.8-million ton/year LNG processing train to add to two existing trains each of the same capacity at Teluk Bintun in Papua Barat province.

As part of the expansion project, BP said it and its partners will supply 40% of the LNG output from Train 3 (1.5 million tons/year) to Indonesia’s state electricity company PT PLN to help meet domestic energy demand.

“This is a significant milestone for the Tangguh expansion project. We look forward to receiving the remaining approvals from the government to realise the project, which will bring significant benefit to Indonesia,” said Christina Verchere, BP’s president for the Asia Pacific region.

BP Berau Ltd, a subsidiary of the UK major, holds a 37.16% stake in Indonesia’s third largest LNG supply facility that is also the first that fully combines upstream and downstream operation in the country. Tangguh LNG’s other shareholders are MI Berau BV (16.3%), CNOOC Muturi Ltd (13.9%), Nippon Oil Exploration (Berau) Ltd (12.23%), KG Berau/KG Wiriagar (10%), Indonesia Natural Gas Resources Muturi Inc. (7.35%), and Talisman Wiriagar Overseas Ltd. (3.06%).

The consortium which started operating the Tangguh LNG complex in 2009 expects to complete the expansion in 2019, lifting the project’s total capacity to 11.4 million tones/year.