Floating LNG proposed to exploit Indonesian gas asset

Malaysian floating production specialist Bumi Armada is eyeing its second floating liquefied natural gas project, which would exploit gas produced at Husky CNOOC Madura Limited’s (HCML) Madura gas fields complex offshore Indonesia.

Bumi Armada on Wednesday confirmed it is proposing to tie up with Indonesia’s Pertamina International Shipping and compatriot Davenergy Mulia Perkasa for the FLNG venture.

Preliminary discussions have already been initiated with several potential clients and the first shipment of LNG is anticipated to occur three years after the final investment decision is taken.

By leveraging their respective expertise, it is envisaged that Bumi Armada and Pertamina International Shipping will design, engineer, construct, install, commission, hook up and operate a FLNG and storage facility, together with an LNG carrier to transport volumes to consumers which are not proximate to clean energy sources.

“We are excited to collaborate with Pertamina International Shipping and Davaenergy in this opportunity to bring sustainable and scalable solutions to reduce carbon emissions in Indonesia, which is also in line with Bumi Armada’s recently launched decarbonization agenda to achieve net zero by 2050,” said Gary Christenson, Bumi Armada’s chief executive.

“This collaboration is a testament to our strong commitment towards providing the best decarbonisation solutions globally.”

The trio have signed a non-binding agreement that will focus on recording the key principles for the development and commercialisation of LNG from the Madura gas field and surrounding fields.

Pertamina ]International Shipping is a shipping and marine logistics sub-holding of Indonesia’s national energy company Pertamina while Davaenergy is an Indonesian natural gas trading company.

Davaenergy is dedicated to advancing Indonesia's LNG market while actively contributing to the nation's growth. This commitment is reflected through the delivery of reliable and sustainable energy solutions that support the nation's net-zero aspiration, noted Bumi Armada.

The Malaysian contractor is a partner in the Karapan Armada Sterling 3 floating production, storage and offloading vessel that is today deployed on HCML’s Madura BD field.

Bumi Armada hailed this as the only FPSO in the world that uses an amine recovery system to extract hydrogen sulphide from the produced gas, which the company said is similar to the amine systems used for many carbon dioxide capture and recovery systems.

Drawing from this experience, Bumi Armada is currently engineering a carbon capture injection system for a gas field in Indonesia.

The company also owns and operates the only FLNG terminal in Malta.