Tangguh LNG: Big project, huge risks

The briefing examines the Tangguh LNG project in West Papua, Indonesia, highlighting its environmental and social impacts and the role of multilateral development banks (MDBs) in its financing. It argues that the proposed expansion to Train 4 and the implementation of carbon capture, utilisation, and storage (CCUS) are 'false solutions' that prolong fossil fuel dependency. The document criticises the ADB, IFC, and AIIB for inadequate Paris Alignment methodologies and energy policies that allow continued gas investment. It recommends that MDBs cease all fossil fuel funding, plug financial intermediary loopholes, and strengthen accountability mechanisms for affected Indigenous communities.

• The Tangguh LNG project, operated by BP Berau, has caused significant socio-ecological harm, including the displacement of Indigenous communities from ancestral villages and the loss of traditional fishing and hunting grounds.
• The project has negatively impacted the environment in Bintuni Bay, specifically damaging mangrove forests, with the ADB confirming that 11 hectares were cleared.
• Multilateral development banks (MDBs) have provided both direct and indirect financing for Tangguh LNG; the ADB provided loans of $350m in 2005 and $400m in 2016, while the IFC and AIIB provided indirect support through financial intermediaries like PT Indonesia Infrastructure Finance and Bayfront Infrastructure Capital IV.
• Current MDB Paris Alignment methodologies and energy policies are deemed inadequate because they contain loopholes that allow continued investment in fossil gas, often framed as a 'transition fuel'.
• The proposed expansion to Train 4 and the associated CCUS facility are described as 'false solutions' that may lock Indonesia into high emissions and delay the transition to renewable energy.
• The project operates in a region of conflict where the deployment of military forces to secure natural resources has led to the repression of civic space and human rights abuses against Papuan activists.

APA

Indri, N., & Pamintuan, M. (2025). Tangguh LNG: Big project, huge risks. Trend Asia. https://trendasia.org/wp-content/uploads/2025/09/ENGLISH_Tangguh-LNG-project_Trend-Asia_Recourse.pdf

Chicago

Indri, Novita, and Marjorie Pamintuan. Tangguh LNG: Big project, huge risks. Trend Asia, 2025. https://trendasia.org/wp-content/uploads/2025/09/ENGLISH_Tangguh-LNG-project_Trend-Asia_Recourse.pdf.

Wikipedia

{{cite report |last1=Indri |first1=Novita |last2=Pamintuan |first2=Marjorie |title=Tangguh LNG: Big project, huge risks |publisher=Trend Asia |date=September 2025 |url=https://trendasia.org/wp-content/uploads/2025/09/ENGLISH_Tangguh-LNG-project_Trend-Asia_Recourse.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{indri2025tangguh, author = {Indri, Novita and Pamintuan, Marjorie}, title = {{Tangguh LNG: Big project, huge risks}}, institution = {Trend Asia}, year = {2025}, month = sep, url = {https://trendasia.org/wp-content/uploads/2025/09/ENGLISH_Tangguh-LNG-project_Trend-Asia_Recourse.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }