Floating LNG Facilities Targeted To Be Completed In Early 2027

JAKARTA - Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia revealed that the construction of the Floating Liquefied Natural Gas (FLNG) or Floating LNG facility will be completed in the first quarter of 2027.

This was revealed by Bahlil when he directly inspected the construction of FLNG at the Wison New Energies shipyard, Nantong City.

This facility will later process gas from the Red Smoke Kido Field (AKM) in Fakfak Regency, West Papua, operated by Genting Oil Kasuri.

According to Bahlil, this facility will start operating in Fakfak in the second to third quarters of the same year.

"This Floating LNG facility is expected to be completed in early 2027, and will start producing in West Papua a few months later," he said in a statement to the media, Wednesday, August 13.

Bahlil detailed that the FLNG ship that is being worked on has a production capacity of up to 1.2 million LNG metric tons per year, with an investment value of around 963 million US dollars. The presence of this facility will be the first in Indonesia as well as the ninth FLNG in the world.

This visit to the shipyard is a follow-up to the Bahlil inspection into the AKM field in June 2025.

At that time, he emphasized the importance of validating the progress of the construction of the facility known as the largest FLNG in Indonesia.

This will be the largest LNG floating in Indonesia, and according to reports, the ninth in the world. But we will still validate the progress. I will send the team to a factory in China to confirm the construction," said Bahlil in Teluk Bintuni Regency, West Papua, last June 11.

The construction of the FLNG began with an agreement signed in June 2024 between Genting Group through its subsidiary, PT Layar Nusantara Gas, and Wison New Energies. Later, FLNG will receive gas supply from the AKM projected projected to produce 330 million standard cubic feet per day or the Million Standard Cubic Feet per Day (MMSCFD) starting in 2027.

For information, Wison Nantong Yard is a shipyard facility that has been operating since 2006 in the Nantong High Technology Industrial Estate, Jiangsu Province, about 135 km from the Wison head office in Shanghai.

This facility specializes in building floating structures such as LNG Floating hulls and SPB (Self-supporting Prismatic Type B) tanks, as well as providing EPCIC (Engineering, Procurement, Construction, Installation, Commissioning) services.

With a production capacity of up to five units per year, Nantong Yard is able to assemble FLNG, LNG carriers, FSRP (Floating Storage Regasification Power barrier), as well as mass export large modules and tanks.