Malaysia’s Genting, through its oil and gas subsidiaries, has awarded a contract to Wison New Energies for the construction of a 1.2 million tonnes per annum (mtpa) FLNG facility.
The engineering, procurement, construction, installation and commissioning (EPCIC) is valued at $962.8m (RM4.53trn).
Wison New Energies, based in China, will undertake the construction of the FLNG facility at its shipyards in Nantong and ZhouShan.
Following the successful yard performance test, the FLNG facility is due to be transported to Teluk Bintuni, West Papua, Indonesia, for final commissioning.
The project timeline is estimated at 27 months from the EPCIC contract execution, with an additional 18-month warranty period.
The anticipated departure of the FLNG facility from ZhouShan shipyard is scheduled for the second quarter of 2026.
Genting Oil Kasuri, an indirect subsidiary of Genting, will supply feed gas for the FLNG facility from the Asap, Merah and Kido structures within the Kasuri Block concession area in West Papua, Indonesia.
This concession was awarded to Genting Oil Kasuri under a production sharing contract signed in May 2008.
The Indonesian Government approved the revised first phase plan of development for these structures in February 2023.
With the approval, GOKPL will be able to supply 230 million standard cubic feet per day (mscf/d) of natural gas to the FLNG facility for 18 years.
Additionally, another 101mscf/d of natural gas will be supplied to an ammonia and urea plant in West Papua, Indonesia, for 17 years.
GlobalData reports that production from the Asap-Kido-Merah Complex conventional gas development project is expected to commence in 2026, with peak production forecasted for 2029.
Based on current economic assumptions, production is expected to continue until the field reaches its economic limit in 2056.
Genting president and chief operating officer Tan Kong Han, as reported by Reuters, said that Genting had "very significant success" at its West Papua gas block following exploratory drilling.
"We have had a lot of very significant success on this block. We drilled ten wells, all ten wells have encountered hydrocarbons," he was quoted as saying at a press briefing.
Details about the gas offtake agreements from the proposed FLNG facility were not revealed by Genting.
Tan stated that the company was "engaged in discussions" with buyers such as Shell and BP.
