A liquefied natural gas tanker passing by the Strait of Singapore.
Malaysian casino billionaire Lim Kok Thay’s Genting is increasing its investment in a floating liquified natural gas (FLNG) project in Indonesia by 33% to $1.3 billion as it seeks to accelerate the transition from coal.
Genting’s PT Layar Nusantara Gas will spend additional $315 million to link its $962.8 million FLNG facility in Indonesia’s West Papua to a pipeline and onshore gas processing plant, Kuala Lumpur-based Genting said in a statement on Monday.
PT Layar Nusantara Gas recently awarded a $182.9 million contract to China National Machinery Import & Export Corp. and Shandong Kerui Energy Development Co. Ltd. to design, engineer and oversee procurement activities for the onshore gas processing plant, connecting pipelines and supporting facilities that will serve as “midstream Infrastructure” of the LNG Project in West Papua, Genting said.
Genting, which has over 3,500 megawatts of gross installed electricity generating capacity, has been stepping up investments in renewable energy as the group commits transition from coal to clean energy.
PT Layar Nusantara also signed a $132.3 million contract with PT China Construction Yangtze River Indonesia for the construction, installation and commissioning the midstream infrastructure, Genting said.
Expected to be completed in 25 months, the infrastructure will receive raw gas from the Asap, Merah and Kido structures within the concession area of the Kasuri Block in West Papua. The block was awarded to Genting Oil Kasuri, which has a production sharing agreement with Indonesia’s oil and gas regulator BP MIGAS.
The midstream infrastructure will treat raw gas, which will then be liquefied in the floating LNG vessel. When completed, the facility can produce 1.2 million metric tonnes per annum.
Lim is the chairman and CEO of Genting, which was founded by his late father Lim Goh Tong in 1965 to build an integrated casino resort in Genting Highlands, north of Kuala Lumpur. Today, the group operates casinos in the Bahamas, Singapore, U.S. and U.K. With a net worth of $2.2 billion, Lim also has interests in real estate and palm plantations.