KUALA LUMPUR (Oct 28): Genting Bhd (KL:GENTING) has awarded two contracts worth a collective RM1.36 billion to Indonesian and Chinese contractors to complete the onshore gas processing plant, connecting pipelines and supporting facilities for its floating liquefied natural gas (FLNG) facility that will be deployed in West Papua, Indonesia.
In a press release on Monday, Genting said its 95%-owned indirect subsidiary PT Layar Nusantara Gas (PTLNG) has entered into a definitive agreement with China National Machinery Import & Export Corporation (CMEC) and Shandong Kerui Energy Development Co Ltd (Kerui) for the design, engineering and procurement activities for the onshore gas processing plant, connecting pipelines and supporting facilities (midstream infrastructure). The award is worth US$182.87 million (about RM793.22 million).
PTLNG has 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, for a fixed lump sum contract price of IDR2.05 trillion (approximately RM566.79 million).
The midstream infrastructure is estimated to be completed in 25 months. "Once it (the midstream infrastructure) is completed, it shall be ready to receive raw gas from the Asap, Merah and Kido structures within the concession area of the Kasuri Block in West Papua, Indonesia," Genting said.
The concession area of the Kasuri Block was awarded to the group’s 95%-owned indirect unit Genting Oil Kasuri Pte Ltd, which has a production sharing contract with BP MIGAS, the Indonesian oil and gas regulator. BP MIGAS had since been succeeded by SKK MIGAS. The contract was signed in May 2008.
"The raw gas from upstream shall be treated at the midstream infrastructure before being liquified into liquefied natural gas at the FLNG vessel," Genting added.
Genting had, in June, awarded a US$1 billion contract to Wison New Energies Co Ltd for the engineering, procurement, construction and commissioning (EPCC) of the FLNG vessel. The vessel is 38.83% completed as at Sep 26, 2024, Genting said. Once completed, the FLNG facility is expected to have an annual capacity of up to 1.2 million tonnes.
Shares of Genting closed unchanged on Monday at RM3.99, for a market capitalisation of RM15.47 billion.