Genting Berhad signs contracts for Indonesia floating LNG facility
Published by Jessica Casey,
Editor
LNG Industry,
Genting Berhad has announced that following from its announcement on 20 June 2024, the company has achieved another critical milestone in its floating liquified natural gas project (the Genting FLNG project). Its 95%-owned indirect subsidiary, PT Layar Nusantara Gas (PTLNG), has entered into definitive agreement with China National Machinery Import & Export Corp. (CMEC) and Shandong Kerui Energy Development Co. Ltd (Kerui) for the design, engineering and procurement activities (procurement contract) for the onshore gas processing plant, connecting pipelines, and supporting facilities (midstream infrastructure) for the Genting FLNG project to be located in West Papua, Indonesia. The fixed lump sum price for the procurement contract is US$182 873 905.87 (excluding reimbursable sum of US$2 574 000).
PTLNG has also entered into a separate contract for the construction, installation, and commissioning of the midstream infrastructure with a local Indonesian company called PT China Construction Yangtze River Indonesia (PT CCYRI) for a fixed lump sum contract price.
The midstream infrastructure is estimated to be completed in 25 months. Once it is completed, it shall be ready to receive raw gas from the Asap, Merah, and Kido structures within the concession area of the Kasuri Block in West Papua, Indonesia, awarded to Genting Oil Kasuri Pte Ltd (GOKPL), another 95% indirect subsidiary of the company pursuant to a production sharing contract signed in May 2008 between GOKPL and BP MIGAS, the Indonesian oil and gas regulator (which had since been succeeded by SKK MIGAS) (Kasuri PSC).
The raw gas from upstream shall be treated at the midstream infrastructure before being liquefied into LNG at the FLNG vessel. The upstream development by GOKPL under the Kasuri PSC has progressed well with re-entry activities conducted at Asap 4X well which was successfully spudded in August 2024 and Asap 2X well in October 2024. To-date, GOKPL has procured some of the long lead items for the upstream development. Pre-qualification review process for the early production facility contract and the EPC contract have also been completed.
In respect of the downstream development, the FLNG vessel which is being constructed by Wison New Energies Co., Ltd pursuant to the EPCICC executed on 20 June 2024, is 32.83% completed as at 26 September 2024.
Read the article online at: https://www.lngindustry.com/floating-lng/29102024/genting-berhad-signs-contracts-for-indonesia-floating-lng-facility/
You might also like
10 Questions for the LNG Market in 2025
Unpack the opportunities and challenges that LNG markets in the Asia-Pacific may experience in 2025. From the impact of tariffs on US-China relations, to the growth of LNG demand in Asia, S&P Global Commodity Insights explores the global implications of regulatory shifts, infrastructure expansions, and supply-demand dynamics on the LNG landscape.