Malaysian investment holding and management company Genting Berhad, via its indirect subsidiaries Genting Oil & Gas Sdn Bhd and PT Layar Nusantara Gas, has signed a contract with Wison New Energies on June 20, worth over $1billion, for the construction of a 1.2 million tonnes per annum floating liquefied natural gas facility FLNG to be operated in West Papua, in Indonesia.
Wison will construct the FLNG facility at their shipyards located at Nantong and ZhouShan in China. This deal will be Wison’s third contract to construct the FLNG facilities, after contracts with Exmar and ENI.
The Genting Group’s FLNG facility will be the first FLNG facility in Indonesia and the ninth FLNG in the world.
The project is expected to achieve first drop of LNG in the third quarter of 2026 and will be funded by internally generated funds and project financing.
The contract price agreed by the parties is $962.8m but it would exceed the $1bln, according to the company Genting Berhad.
After passing the yard performance test, the FLNG Facility shall 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 from the execution of the engineering, procurement, construction, installation and commissioning contract, followed by a 18-month warranty period.
The government of Indonesia approved the revised first phase plan of development for the Asap, Merah and Kido structures last year, which allows the supply of 230 million standard cubic feet per day of natural gas to the FLNG facility for 18 years, as well as another supply of 101 million standard cubic feet per day of natural gas to an ammonia and urea plant to be built in West Papua, Indonesia for 17 years.
“The successful signing of this project will further promote Belt and Road cooperation, and greatly contribute to Indonesia’s energy transition and economic development. The Genting Group’s FLNG facility is not only the first FLNG facility in Indonesia, but also another milestone FLNG project for WNE as this will be the third FLNG facility built by us,” said Liu Hongjun, chairman of Wison New Energies.
