BP Invests $7B in Indonesia Gas With First Carbon Capture Tech

BP plc (BP), a leading UK-based energy company, and its partners in the Tangguh production sharing contract have announced the final investment decision for the $7 billion Tangguh Ubadari CCUS Compression (“UCC”) project in Papua Barat, Indonesia. The project is poised to unlock approximately 3 trillion cubic feet of additional gas resources, aligning with BP’s strategy to meet Asia's growing energy demand while advancing its low-carbon commitments.The Tangguh UCC project is set to feature Indonesia’s first large-scale implementation of carbon capture, utilization, and storage (CCUS) technology. This innovative approach aims to sequester 15 million tons of CO2 in its initial phase, with potential for further expansion due to the area’s substantial storage capacity. The project includes developing the Ubadari gas field and enhancing existing infrastructure at the Tangguh LNG facility, which already boasts a liquefaction capacity of 11.4 million tons per year.Production from the Ubadari field is expected to begin in 2028, further solidifying the region's role in providing sustainable energy solutions.BP CEO Murray Auchincloss, during a meeting in London with Indonesian President H.E. Prabowo Subianto, highlighted the project's dual significance. He noted that it unlocks substantial gas resources while marking a milestone for Indonesia by incorporating CCUS technology to enhance gas recovery. Auchincloss also underscored BP’s long-standing presence in Indonesia, leveraging over 55 years of experience and strong local partnerships to drive this groundbreaking development.The Tangguh UCC project aligns with BP’s disciplined financial framework, meeting its return hurdle rates and reinforcing its focus on value-driven investments. With Tangguh UCC, BP continues to lead in leveraging technology and innovation to meet the dual challenge of energy security and decarbonization, setting a benchmark for future projects in the region.BP’s Zacks Rank & Key PicksBP currently carries a Zack Rank #3 (Hold).Investors interested in the energy sector may look at some better-ranked stocks like Smart Sand, Inc. SND, FuelCell Energy FCEL and Nine Energy Service NINE, each presently carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Smart Sand is a low-cost producer of high-quality Northern White frac sand, an ideal proppant for hydraulic fracturing and various industrial applications. The company provides proppant and other logistics services for several companies in the oil and gas industry. With sustained oil and gas market demand, SND is expected to see growing demand for its services, reflecting a positive outlook.FuelCell Energy is a clean energy company offering low-carbon energy solutions. It produces power using flexible fuel sources such as biogas, natural gas and hydrogen. The company designs fuel cells that generate electricity through an electrochemical process that combines fuel with air, reducing carbon emissions and minimizing the environmental impact of power generation. As such, FCEL is anticipated to play a crucial role in the energy transition by enabling industries and communities to shift from traditional fossil fuels to low-carbon alternatives.Nine Energy Service provides onshore completion and production services for unconventional oil and gas resource development. The company operates across key prolific basins in the United States, including the Permian, Eagle Ford, MidCon, Barnett, Bakken, Rockies, Marcellus and Utica, as well as throughout Canada. With a sustained demand for oil and gas in the future, the demand for NINE’s services is anticipated to increase, which should position the company for growth in the long run.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report BP p.l.c. (BP): Free Stock Analysis Report FuelCell Energy, Inc. (FCEL): Free Stock Analysis Report Smart Sand (SND): Free Stock Analysis Report Nine Energy Service, Inc. (NINE): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks