Report on Tangguh LNG: Big project, huge risks

The report details how the Asian Development Bank, the World Bank Group's IFC, and the Asian Infrastructure Investment Bank have financed Tangguh LNG, Indonesia's largest gas extraction site. It argues that this support locks Indonesia into fossil gas dependence, harms Indigenous communities, and increases greenhouse gas emissions, while calling for MDBs to end all fossil fuel funding.

• Multilateral development banks (MDBs) have provided significant direct and indirect funding for Tangguh LNG since 2005. The Asian Development Bank (ADB) issued a $350m loan in 2005 for construction and a $400m loan in 2016 for the third production facility (Train 3). Indirect finance was channeled through Indonesia Infrastructure Finance by the ADB and the International Finance Corporation (IFC), while the Asian Infrastructure Investment Bank (AIIB) provided indirect financing via the Bayfront Infrastructure Capital IV debt security.
• Tangguh LNG has caused environmental and social harm, including the displacement of Indigenous communities and the destruction of the local environment. The project increases greenhouse gas emissions and supplies fuel to existing and proposed gas-fired power plants in Indonesia. Local government officials have reported that the project failed to meet its social responsibility obligations.
• In February 2025, the Indonesian government proposed expanding the site with a fourth LNG production facility and a carbon capture utilisation and storage (CCUS) facility. The report argues that current MDB climate and energy policies are insufficient to prevent further financing of this expansion.

APA

Race, M. (2025). Report on Tangguh LNG: Big project, huge risks. Recourse. https://re-course.org/newsupdates/tangguh-lng/

Chicago

Race, Madeleine. Report on Tangguh LNG: Big project, huge risks. Recourse, 2025. https://re-course.org/newsupdates/tangguh-lng/.

Wikipedia

{{cite report |last1=Race |first1=Madeleine |title=Report on Tangguh LNG: Big project, huge risks |publisher=Recourse |date=29 September 2025 |url=https://re-course.org/newsupdates/tangguh-lng/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{race2025report, author = {Race, Madeleine}, title = {{Report on Tangguh LNG: Big project, huge risks}}, institution = {Recourse}, year = {2025}, month = sep, url = {https://re-course.org/newsupdates/tangguh-lng/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }