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British oil giant BP plc (BP - Analyst Report) has proposed to award an onshore front-end engineering and design (FEED) contract for a third liquefaction train for the Tangguh liquefied natural gas (LNG) project in Bintuni Bay, West Papua, Indonesia, over the coming months.

The project is estimated to cost about $12 billion. The award is slated to be given out by the end of the current quarter. Final investment decision for the project is anticipated to be made in 2015, while the first LNG shipment is planned for 2019.

Per the project proposal, BP intends to build a third train with a capacity of 3.8 million tons per year at the site. Currently, the two trains in operation generate about 7.6 million tons per year of LNG.

As the operator of the Tangguh LNG project, BP holds a 37.16% interest. The company’s operation in Indonesia dates back to over 35 years. Presently, it is one of the largest foreign investors with cumulative investment of over $5 billion to date.

BP plc is one of the world's largest energy companies, providing its customers with fuel for transportation, energy for heat and light, retail services and petrochemical products. Previously, the company used to report earnings through three segments: Exploration and Production, Refining and Marketing, and Other Businesses and Corporate.

The company is offloading its non-core upstream properties while creating a portfolio with potentially stronger growth from a smaller base. Additionally, BP’s position in the Woodford, Haynesville, Fayetteville, Eagle Ford and Utica shale plays, in association with its vast resource base and profound knowledge in unconventional gas, will aid its natural gas operations going forward.

BP carries a Zacks Rank #2 (Buy). Other stocks worth considering in the oil and gas sector include NGL Energy Partners LP (NGL - Snapshot Report), Cheniere Energy Partners L.P. (CQP) and Pembina Pipeline Corporation (PBA - Snapshot Report). All these stocks hold a Zacks Rank #1 (Strong Buy).

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