Genting Oil & Gas Limited (“GOGL”), via its wholly-owned indirect subsidiary PT Layar Nusantara Gas (“PTLNG”), and Wison (Nantong) Heavy Industry Co., Ltd. (“Wison”), an affiliate of Wison Offshore & Marine have entered into a Limited Notice to Proceed Agreement to purchase USD43.04 million of long lead items for a 1.2 MTPA Floating Liquified Natural Gas (“FLNG”) Facility (“Agreement”) on 8 September 2023.
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 & Commissioning (“EPCIC”) Contract.
During the said signing ceremony, Mr. Hua 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 to achieve first drop of LNG in Kasuri Block by Q2 of 2026. Due to Indonesia’s archipelago nature and abundant marginal gas resources, 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 FLNG facility to the Indonesian Government and gas operators.”
Wison is currently conducting front-end engineering and design (“FEED”) study for the FLNG facility, which is estimated to be completed by end of November 2023.
Genting Group is committed to the Project and to ensure no slippage of time, PTLNG has entered into the Agreement with Wison prior to the execution of the EPCIC Contract, which shall only be ready after the completion of the FEED study.
The Project is expected to achieve first drop of LNG in 1st half of 2026.