London, June 28 (The Energy Circle) - Malaysia’s Genting Group has taken a significant step forward in the energy sector by awarding a major contract to China’s Wison New Energies. This contract, worth over $1 billion, involves the construction of a 1.2 million tonnes per annum (mtpa) floating liquefied natural gas (FLNG) unit. This state-of-the-art facility will be deployed offshore Indonesia, specifically in Teluk Bintuni, West Papua.

The engineering, procurement, construction, installation, and commissioning (EPCIC) contract was officially awarded to Wison on 20 June 2024. The contract, valued at $962.8 million, is expected to exceed $1 billion when reimbursable costs of up to $70 million are included. Wison will construct the FLNG unit at its shipyards in Nantong and ZhouShan, China. Once the yard performance test is completed, the facility will be transported to its final destination in West Papua, where the final commissioning test will occur.

The project is expected to take 27 months, with an estimated sail-away date in the second quarter of 2026. The feed gas for this facility will be sourced from the Asap, Merah, and Kido structures within the Kasuri Block, supplied by Genting Oil Kasuri (GOKPL), a 95% indirect subsidiary of Genting. This initiative is part of a larger plan approved by the Indonesian government to supply substantial quantities of natural gas to both the FLNG facility and an Ammonia and Urea plant for many years.

This milestone project represents Wison’s third FLNG construction contract and marks Indonesia's first and the world's ninth FLNG unit. Genting’s subsidiary PT Layar Nusantara Gas (PTLNG) has already committed $188 million under a Limited Notice to Proceed (LNTP) agreement to maintain the project timeline.