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Wison (Nantong) Heavy Industry, an affiliate of Wison Offshore & Marine, and Genting Oil & Gas Limited (GOGL), via its wholly-owned indirect subsidiary PT Layar Nusantara Gas (PTLNG), have entered into a limited notice to proceed agreement (LNTP) to purchase $43.04 million of long lead items for a 1.2 mtpa floating liquified natural gas (FLNG) facility.
Wison said the agreement allows PTLNG to place orders for long lead items including cold box, compressor, generator sets etc. prior to the execution of the engineering, procurement, construction, installation and commissioning (EPCIC) contract, adding that PTLNG is a special-purpose vehicle established to construct, own and operate a 1.2 mtpa FLNG facility, an onshore gas processing plant and a pipeline to be located in West Papua, Indonesia.
During the signing ceremony, the Chairman of Wison, Hua Bangsong, said: “According to the Gastech exhibition in Singapore that I attended, the LNG market is very tight at the moment, and it is expected that the future demand will increase significantly, so it is necessary to lock in key resources as soon as possible to ensure that the project will be put into production on time.”
“The signing of this agreement marks a key milestone in achieving the first drop of LNG in Kasuri Block by Q2 of 2026. Due to Indonesia’s archipelago nature and abundant marginal gas resources, the FLNG facility offers the most cost-effective option to monetize natural gas in the region, and Wison sees Indonesia as an important strategic market for FLNG.
“I would like to state Wison’s commitment to Genting Group’s FLNG project and to ensure its smooth implementation and delivery. We hope this project will demonstrate the value of the FLNG facility to the Indonesian Government and gas operators.”
Dato’ Sri Tan Kong Han, President & COO & Executive Director of Genting Berhad, the holding company of GOGL, noted that the Genting Group’s FLNG facility shall be the first FLNG facility in Indonesia and expressed gratitude to the Government of Indonesia for approving the revised first phase plan of development for the Asap, Merah and Kido structures in February 2023, which allows the supply of 230 million cubic feet per day (mmcfd) of natural gas to the FLNG facility for 18 years, as well as another supply of 101 mmcfd of natural gas to an ammonia and urea plant to be built in West Papua, Indonesia for 17 years.
Wison said the Asap, Merah and Kido structures are within the concession area for the Kasuri Block in West Papua, Indonesia, awarded to Genting Oil Kasuri Pte Ltd (GOKPL), another wholly-owned indirect subsidiary of GOGL, 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.
Wison is currently conducting a front-end engineering and design (FEED) study for the FLNG facility, which is estimated to be completed by the end of November 2023. |
