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Genting said on Monday that its 95 percent-owned indirect subsidiary Layar Nusantara Gas (PTLNG) entered into a definitive agreement with China National Machinery Import & Export Corporation (CMEC) and Shandong Kerui Energy Development (Kerui).
The contract covers the design, engineering, and procurement activities for the onshore gas processing plant, connecting pipelines, and supporting facilities for the Genting FLNG project.
Genting said the fixed lump sum price for the midstream infrastructure contract is $189.87 million, excluding a reimbursable sum of $2.57 million.
In addition, PTLNG also entered into a separate contract for the construction, installation, and commissioning of the midstream infrastructure with a local Indonesian company PT China Construction Yangtze River Indonesia.
This contract is worth about $132.3 million.
25 months
Genting expects the midstream infrastructure to be completed in 25 months.
Following completion, the infrastructure will receive raw gas from the Asap, Merah, and Kido structures within the concession area of the Kasuri Block in West Papua.
This block was awarded to Genting Oil Kasuri (GOKPL), another 95 percent-owned indirect subsidiary of Genting, 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).
The raw gas from upstream will be treated at the midstream infrastructure before being liquefied on the FLNG unit.
According to Genting, the upstream development by GOKPL under the Kasuri PSC has “progressed well” with reentry activities conducted at Asap 4X well which was successfully spudded in August 2024 and Asap 2X well in October 2024.
To date, GOKPL has procured some of the long-lead items for the upstream development.
The pre-qualification review process for the early production facility contract and the engineering, procurement, and construction contract have also been completed.
FLNG
In respect of the downstream development, the FLNG vessel is 32.83 percent complete as of September 26, 2024, Genting said.
In June, Genting’s units entered into an engineering, procurement, construction, installation, and commissioning contract with China’s Wison New Energies for the 1.2 mtpa FLNG.
Genting said the EPCIC deal is worth $962.8 million, while the price would exceed $1 billion including reimbursable costs of up to $70 million.
Under the EPCIC contract, Wison is building the FLNG facility at its shipyards 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.
The project duration is estimated to be 27 months from the execution of the contract followed by a 18-month warranty period.
Genting previously said the target sail away date from the Zhoushan shipyard will be in the second quarter of 2026.
