China’s Wison New Energies has secured a contract from a unit of Genting to build a floating LNG unit worth about $1 billion. Following completion in 2026, the 1.2 mtpa FLNG will be installed in Indonesia.
Genting’s unit Genting Oil & Gas and and another 95 percent-owned indirect subsidiary Layar Nusantara Gas (PTLNG) have on Thursday entered into an engineering, procurement, construction, installation, and commissioning contract with Wison New Energies.
According to a filling to the stock exchange by Malaysia’s Genting, the EPCIC deal is worth $962.8 million. The price would exceed $1 billion including reimbursable costs of up to $70 million.
Steel cut
In September last year, Genting Oil & Gas, via its indirect unit Layar Nusantara Gas, entered into a deal with Wison (Nantong) Heavy Industry, a unit of Wison New Energies, to secure long lead items for the floating LNG production project in West Papua, Indonesia.
Genting purchased $43.04 million worth of equipment to ensure the project is completed in accordance with the planned schedule of achieving first drop of LNG in third quarter of 2026.
The LNTP agreement has been extended further to cover the progress of the engineering work up to the date of signing of this EPCIC contract including hull steel-cutting on June 7, 2024, Genting said.
To date, Genting’s unit PTLNG has committed to a total sum of $188 million under the LNTP agreement and this amount forms part of the EPCIC contract price of $962.8 million, Genting said.
Also, the company said that the project will be funded by internally generated funds and project financing.
Genting is in “advanced stage” of securing project financing from a group of Chinese and international lenders, it said.
FLNG expected to leave yard in Q2 2026
Pursuant to the EPCIC contract, Wison will construct the FLNG facility at its shipyards
located at Nantong and Zhoushan in China.
After passing the yard performance test, the FLNG will be towed to its final destination located at Teluk Bintuni, West Papua, where the final commissioning test will be carried out, Genting said.
The project duration is estimated to be 27 months from the execution of the contract followed by a 18-month warranty period.
Genting said the target sail away date from the Zhoushan shipyard will be in the second quarter of 2026.
Once ready for operations in Indonesia, the FLNG will receive feed gas from the Asap, Merah, and Kido structures within the concession area of the Kasuri block in West Papua,
The block is operated by Genting Oil Kasuri (GOKPL), another 95 percent-owned indirect subsidiary of Genting.
Also, the government of Indonesia has approved in February last year the revised first phase plan of development for the Asap, Merah, and Kido structures.
This allows the supply of 230 million cubic feet per day 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, Genting said.
Third FLNG for Wison
This is Wison’s third FLNG contract, after contracts with Exmar and Eni.
Also, this will be the first FLNG facility in Indonesia and the ninth FLNG in the world, Genting said.
Wison won a contract from Italy’s Eni in December 2022 to build a 380 meters long 2.4 mtpa FLNG and officially started work on the project in January last year.
The company recently completed the installation of all SPB tanks on the FLNG, which will serve the Marine XII offshore FLNG project in Congo.
This will be the second FLNG for the project as the Tango FLNG already works in Congo.
The Italian firm purchased the 144 meters long Tango FLNG from Belgium’s Exmar.
The floating LNG producer, delivered in 2017 by Wison, has a liquefaction capacity of about 1 billion cubic meters per year of gas, or 0.6 mtpa, and a storage capacity of 16,100 cbm.