Chairman and chief executive of Genting Tan Sri Lim Kok Thay
KUALA LUMPUR: Genting Bhd
has via two of its subsidiaries entered into an engineering, procurement, construction, installation and commissioning (EPCC) contract with Wison New Energies Co Ltd for a floating liquefied natural gas facility with a capacity of 1.2 million tonnes per annum (MTPA).
In a statement, Genting said the contract, inked by its wholly-owned indirect subsidiary Genting Oil & Gas Sdn Bhd and another 95%-owned subsidiary PT Laya Nusantara Gas, is valued at US$962.8mil, but will exceed US$1bil after including reimbursable costs of up to US$70mil.
According to the terms of the contract, Wison will construct the FLNG facility at its shipyards located in Nantong and ZhouShan in China, whereupon it will be towed to its final destinated in Teluk Bintuni, West Papua in Indonesia for the final commissioning test.
The project duration is estimated to be 27 months from the execution of the EPCIC contract, followed by an 18-month warranty period. The target sail away date from the Zhoushan shipyard will be in the second quarter of 2026.
Meanwhile, the feed gas for the FLNG Facility shall be supplied from the Asap, Merah and Kido structures within the concession area of the Kasuri Block in West Papua, which was awarded to Genting Oil Kasuri Pte Ltd (GOKPL), another 95% indirect subsidiary of Genting.
This was 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).
Genting said the project will be funded by internally generated fund and project financing, and is in the advance stage of securing project financing from a group of Chinese and international lenders.
