Kasuri block to process USD 963 million gas in FLNG, production expected by 2027

Jakarta – The Asap Kido Merah Field (AKM) gas project in Kasuri Block, West Papua, managed by Genting Oil Kasuri, will be processed in a Floating Liquefied Natural Gas (FLNG) facility, the Minister of Energy and Mineral Resources (MEMR) said. The facility is being built at the Wison New Energies shipyard, Nantong City, Jiangsu Province, China.

Minister of Energy and Mineral Resources Bahlil Lahadalia, on Wednesday, 13 August, directly reviewed the construction of the facility. He stated that work on the FLNG is targeted for completion in the first quarter of 2027. Initial operations off Fakfak are planned to take place in the second or third quarter of the same year. From Nantong, Bahlil said that gas production in West Papua will begin a few months after the FLNG is completed in early 2027.

The FLNG vessel under construction has a production capacity of up to 1.2 million metric tonnes of LNG per year. The investment value reaches around USD 963 million. The facility will mark a new milestone, becoming the first FLNG in Indonesia and the ninth in the world.

“This will be the largest FLNG in Indonesia. But we don’t just believe reports; we also validate the progress. I will send a team to the factory in China to ensure the workmanship,” Mr Bahlil said.

Gas supply from AKM project

The facility will receive gas supply from the AKM project, which is projected to produce 330 million standard cubic feet per day (MSCFD) from 2027. The FLNG construction agreement was signed in June 2024 between Genting Group through its subsidiary, PT Layar Nusantara Gas, and Wison New Energies.

Bahlil’s visit to Nantong was a follow-up to the AKM field inspection in Teluk Bintuni Regency, West Papua, in June 2025. At that time, he emphasised the importance of supporting facilities for smooth production.

Wison Nantong Yard, where the FLNG is assembled, has been operating since 2006 in the Nantong High-Tech Industrial Zone, about 135 km from Shanghai. The facility specialises in building floating structures such as FLNG hulls, SPB (Self-supporting Prismatic Type B) tanks, and provides EPCIC (Engineering, Procurement, Construction, Installation, Commissioning) services.

With a production capacity of up to five units per year, the yard is capable of assembling FLNG, LNG carriers, FSRP (Floating Storage Regasification Power barge), as well as producing modules and large tanks for the global market. (Hartatik)

Banner photo: Image generated by OpenAI’s DALL·E via ChatGPT (2024)

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