Indonesia's Floating LNG Tanker to Operate in West Papua by 2027, Says Energy Minister

1 month ago 17

August 14, 2025 | 03:55 pm

Indonesian Minister of Energy and Mineral Resources (ESDM), Bahlil Lahadalia, directly inspected the construction progress of a Floating Liquefied Natural Gas (FLNG) facility, or floating LNG vessel, at the Wison New Energies shipyard in Nantong, China, on Wednesday, August 13, 2025. Doc. ESDM

TEMPO.COJakarta – Indonesian Minister of Energy and Mineral Resources (ESDM), Bahlil Lahadalia, directly inspected the construction progress of a Floating Liquefied Natural Gas (FLNG) facility, or floating LNG vessel, at the Wison New Energies shipyard in Nantong, China, on Wednesday, August 13, 2025.

This facility is being built to process gas from the Asap Kido Merah (AKM) Field in Fakfak Regency, West Papua, an oil and gas block managed by Genting Oil Kasuri. The FLNG vessel is targeted for completion in the first quarter of 2027, with operations expected to commence in West Papua by the second or third quarter of the same year.

"The floating LNG facility is expected to be completed in early 2027 and will soon commence production in West Papua a few months later," Bahlil stated in a written statement on Thursday, August 14, 2025.

Bahlil noted that the FLNG vessel boasts a production capacity of up to 1.2 million metric tons of LNG per year. With an investment value of approximately US$963 million, this facility will be the first of its kind in Indonesia and the ninth globally. The minister referred to the vessel as a national strategic project and a new milestone in Indonesia’s gas energy development.

Bahlil's visit to the Wison shipyard was a follow-up to his prior inspection of the AKM Field in West Papua in June 2025. During that initial visit, he emphasized the importance of verifying the project's progress, which is being called the largest FLNG in Indonesia.

"We want to ensure that this project is truly on schedule. Therefore, I sent a team directly to the factory in China to verify the progress," he said.

The FLNG construction project is the result of a cooperation agreement signed in June 2024 between the Genting Group, through its subsidiary PT Layar Nusantara Gas, and Wison New Energies. The floating facility will receive gas supplies from the AKM Field, which is projected to produce 330 million standard cubic feet of gas per day (MMSCFD) starting in 2027.

"With progress proceeding according to plan, this FLNG project will strengthen the national gas infrastructure and become one of the gas processing solutions in remote areas such as West Papua," Bahlil added.

The Wison Nantong shipyard, where the FLNG is being constructed, is located in the High-Tech Industrial Zone of Nantong, Jiangsu Province, about 135 km from Shanghai. The facility has been operational since 2006 and is recognized as one of the world's leading production centers for floating structures.

Wison Nantong has a production capacity of up to five large units per year, including FLNG vessels, LNG carriers, and floating power generation units (FSRP). The facility also provides integrated EPCIC (Engineering, Procurement, Construction, Installation, Commissioning) services and has exported numerous LNG modules and tanks to various countries.

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