Genting awards FLNG construction deal worth over $1bn to Wison New Energies – Splash247

Malaysia’s Genting has contracted Chinese company Wison New Energies for the construction of a 1.2m tonnes per annum FLNG facility in West Papua, Indonesia, in a deal valued over $1bn.

The contract executed by Genting subsidiaries, Genting Oil & Gas Sdn Bhd and PT Layar Nusantara Gas (PTLNG), for the FLNG facility is 962.8m but it will include reimbursable costs of up to $70m.

The project will be funded by internally generated funds and project financing. Genting is already in advanced negotiations for securing project financing from a group of Chinese and international lenders.

Under the EPCIC deal, Wison will construct the FLNG unit at their shipyard at Nantong and ZhouShan in China. After passing the yard performance test, it will be towed to its final destination located at Teluk Bintuni, West Papua, Indonesia, where the final commissioning test will be carried out.

The project duration is estimated to be 27 months and the target sailaway date from ZhouShan shipyard is set for the second quarter of 2026.

The feed gas for the unit will be supplied from the Asap, Merah, and Kido fields within the Kasuri block awarded in May 2008 to Genting Oil Kasuri Pte Ltd, another subsidiary of Genting. The government of Indonesia approved the revised first phase plan of development for the three fields in February 2023.

It allows for the supply of 230 mscfd of natural gas to the facility for 18 years, as well as another supply of 101 mmscfd of natural gas to an ammonia and urea plant to be built in West Papua for 17 years.

This will be Wison’s third contract to construct an FLNG facility, after contracts with Exmar and Eni. This will be the first such facility in Indonesia and the ninth FLNG in the world.

To ensure the timely start of production of LNG in the third quarter of 2026, PTLNG entered into a limited notice to proceed for the purchase of long lead items worth $43m in September 2023.

The limited notice has been extended further to cover the progress of the engineering until this contract signing including hull steel cutting on June 7, 2024. To date, PTLNG has committed $188m under the limited notice agreement and this amount forms part of the $962.8m EPCIC deal.