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Genting orders US$963 million FLNG vessel from China’s Wison
Malaysian conglomerate in talks to secure project financing from group of Chinese and international lenders
Michael Marray 26 Jun 2024

Kuala Lumpur-based conglomerate Genting Berhad has signed an engineering, procurement, construction, installation and commissioning (EPCIC) contract with Wison New Energies for a floating liquefied natural gas (FLNG) vessel amounting to US$963 million.

The deal was done via wholly-owned subsidiary Genting Oil & Gas and 95%-owned unit PT Layar Nusantara Gas (PTLNG).

The project will be funded by internally generated funds and project financing. Genting is at an advanced stage of securing project financing from a group of Chinese and international lenders.

Wison will build the 1.2 million tonnes per annum (mtpa) vessel at its shipyards in Nantong, Jiangsu, and Zhoushan, Zhejiang.

After passing the yard performance test, the FLNG facility will be towed to its final destination at Teluk Bintuni in West Papua, Indonesia, where the final commissioning test will be carried out.

The project duration is estimated at 27 months from execution of EPCIC contract followed by an 18-month warranty period. The vessel is expected to sail away from the Zhoushan shipyard in the second quarter of 2026.

The feed gas for the FLNG facility will be supplied from the Asap, Merah and Kido structures within the concession area of the Kasuri Block in West Papua, which was awarded to Genting Oil Kasuri.

The Government of Indonesia approved the revised first phase plan of development for the Asap, Merah and Kido structures on February 9 2023, which allows the supply of 230 million standard cubic feet per day (mmscfd) of natural gas to the FLNG facility for 18 years, and another 101 mmscfd to an ammonia and urea plant to be built in West Papua for 17 years.

This will be Wison’s third contract to construct FLNG facilities, following contracts with Exmar and ENI. This will be the first FLNG facility to be put into use in Indonesia.

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