Indonesia-focused Genting Oil & Gas Limited, through its wholly owned subsidiary Layar Nusantara Gas, has entered into a limited notice to proceed with the Chinese shipyard Wison (Nantong) Heavy Industry to acquire essential equipment worth $43.04 million for a floating liquefied natural gas (FLNG) vessel for the Kasuri fields development.
The FLNG, to be deployed offshore West Papua, Indonesia, is expected to have annual liquefaction capacity of 1.2 million tonnes.
The agreement grants Layar Nusantara Gas the authority to initiate orders for crucial long lead items, including a cold box, compressors and generator sets, prior to execution of the engineering, procurement, construction, installation and commissioning contract.
Wison is currently performing the front-end engineering and design study for the FLNG facility, which is anticipated for completion by the end of November. Following the FEED phase, the shipyard will transition into the EPCIC phase.
This marks Wison’s third FLNG facility construction project, following previous projects for Exmar and Eni.
Layar Nusantara Gas is a special purpose vehicle established with the sole purpose of constructing, owning and operating the FLNG facility, along with an onshore gas processing plant and pipeline.
Wison chairman Hua Bangsong emphasised the current tightness of the liquefied natural gas market and the expected surge in demand. He stressed the necessity of securing key resources promptly to ensure the successful launch of the FLNG project.
This agreement represents a significant milestone in achieving first gas production from the Kasuri asset by the second quarter of 2026, Wison said in a social media post.
Hua said Indonesia is a crucial market for FLNG, which offers a cost-effective approach to capitalise on the country’s abundant natural gas resources scattered across the archipelago.
Earlier this year, the Indonesian government approved a revised plan of development for the initial phase development of the Asap, Merah and Kido structures on the Kasuri block.
This approval includes the supply of 230 million cubic feet per day of natural gas to the FLNG facility for 18 years, as well as an additional supply of 101 MMcfd of natural gas to an ammonia and urea plant to be constructed in West Papua, Indonesia, over 17 years.
The Kasuri block was awarded to Genting in May 2008. The Malaysian company also has the oil-producing Chengdaoxi Block in the shallow waters of Bohai Bay, China.
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