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    Genting Oil & Gas advances FLNG project in Indonesia

Summary

It has entered into a limited notice to proceed agreement with an affiliate of Wison Offshore & Marine to purchase $43.04mn of long lead items. [Image: Wisopn]

by: Shardul Sharma

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Natural Gas & LNG News, Asia/Oceania, Liquefied Natural Gas (LNG), Security of Supply, Corporate, News By Country, Indonesia

Genting Oil & Gas advances FLNG project in Indonesia

Genting Oil & Gas (GOGL) has announced that it has entered into a limited notice to proceed agreement with Wison (Nantong) Heavy Industry, an affiliate of Wison Offshore & Marine, to purchase $43.04mn of long lead items for a floating LNG (FLNG) project in Indonesia, Wison announced on September 15.

Layar Nusantara Gas, a unit of GOCL, is the special purpose vehicle established to construct, own and operate the 1.2mn tonnes/year FLNG facility, an onshore gas processing plant, and pipeline to be located in West Papua. 

The agreement allows GOGL to place orders for long lead items, such as the cold box, compressor, and generator sets, prior to the execution of the engineering, procurement, construction, installation & commissioning contract.

Wison is conducting the front-end engineering and design study for the FLNG facility, which is expected to be completed by the end of November 2023.

The FLNG project will be located in the Kasuri block in West Papua and is expected to achieve its first LNG in the first half of 2026.

According to the revised first phase plan of development, about 230mn ft3/day of natural gas will be supplied to the FLNG facility for 18 years. Additionally, about 101mn ft3/day of natural gas will be supplied for 17 years to an ammonia and urea plant to be built in West Papua.