Genting Berhad (GENM.KL) has signed a $962.8 million deal with China’s Wison New Energies for a floating liquefied natural gas (LNG) facility, the Malaysian company announced on Thursday.
The facility, set for Indonesia’s West Papua region, will have a capacity of 1.2 million metric tons per annum, with the first production expected in the third quarter of 2026. Wison will construct the facility at its shipyards in Nantong and Zhoushan, China.
Feedgas for the floating facility will come from the Asap, Merah, and Kido structures within the Kasuri gas block concession area, Genting stated. Genting President and Chief Operating Officer Tan Kong Han highlighted the company’s success in the region, noting that all ten exploratory wells drilled in the West Papua gas block encountered hydrocarbons.
Genting Oil Kasuri Pte Ltd, a subsidiary of Genting, signed a production sharing contract for the Kasuri block and first discovered gas there in 2011. Of the gas from the Kasuri block, 101 million standard cubic feet per day (mmscfd) will supply an ammonia and urea plant to be built in West Papua for 17 years, while 230 mmscfd will go to the floating LNG facility for 18 years.
While Genting has not specified clients for the gas offtake from the floating LNG facility, Tan mentioned that the company is in discussions with potential buyers like Shell and BP.
The deal underscores Genting’s expanding footprint in the energy sector and marks a significant milestone in its West Papua operations.