Report on Tangguh LNG: Big Project, Huge Risks for People and Planet
Summary
The report details how the Asian Development Bank, World Bank Group (IFC), and Asian Infrastructure Investment Bank have provided direct and indirect financing for the Tangguh LNG project since 2005. It asserts that the project locks Indonesia into fossil gas dependence, causes environmental destruction, displaces Indigenous communities, and increases greenhouse gas emissions. The document concludes by urging MDBs to end all fossil fuel funding and reject the 'gas as a transition fuel' narrative, specifically opposing the proposed expansion into a fourth production facility and a carbon capture utilisation and storage (CCUS) facility.
Key insights
- Multilateral development banks (MDBs) have provided significant financial support for Tangguh LNG since 2005, including $350m from the Asian Development Bank (ADB) in 2005 for construction and $400m in 2016 for the third LNG production facility (Train 3). Indirect finance was also routed through the 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.
- The Tangguh LNG project has caused negative social and environmental outcomes, including the displacement of Indigenous communities, destruction of the local environment, and increased greenhouse gas emissions. Furthermore, local government officials report that the project failed to meet its social responsibility obligations.
- The Indonesian government proposed the expansion of Tangguh LNG in February 2025 to include a fourth production facility and a carbon capture utilisation and storage (CCUS) facility, which the report argues will further imperil the climate and people.
Cite the original document
- APA
- TrendAsia (2025). Report on Tangguh LNG: Big Project, Huge Risks for People and Planet. Trend Asia. https://trendasia.org/en/report-on-tangguh-lng-big-project-huge-risks-for-people-and-planet/
- Chicago
- TrendAsia. Report on Tangguh LNG: Big Project, Huge Risks for People and Planet. Trend Asia, 2025. https://trendasia.org/en/report-on-tangguh-lng-big-project-huge-risks-for-people-and-planet/.
- Wikipedia
- {{cite report |last1=TrendAsia |title=Report on Tangguh LNG: Big Project, Huge Risks for People and Planet |publisher=Trend Asia |date=30 September 2025 |url=https://trendasia.org/en/report-on-tangguh-lng-big-project-huge-risks-for-people-and-planet/ |access-date=17 August 2026 |via=Climate Insights Directory}}
- BibTeX
- @techreport{trendasia2025report, author = {TrendAsia}, title = {{Report on Tangguh LNG: Big Project, Huge Risks for People and Planet}}, institution = {Trend Asia}, year = {2025}, month = sep, url = {https://trendasia.org/en/report-on-tangguh-lng-big-project-huge-risks-for-people-and-planet/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }
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