Bumi Armada has signed a non-binding deal with Davenergy Mulia Perkasa (DMP) to build a floating LNG (FLNG) on the Madura area.
Bumi Armada and Pertamina International Shipping would design, engineer, construct, install, commission, hook up and operate an FLNG vessel. They would also have an LNG carrier, which would carry gas to consumers.
Once the partners reach a final investment decision (FID), it would take around three years to reach first gas.
Gary Christenson, Bumi Armada CEO, welcomed the opportunity to work with Pertamina International Shipping and DMP “in this opportunity to bring sustainable and scalable solutions to reduce carbon emissions in Indonesia, which is also in line with Bumi Armada’s recently launched decarbonisation agenda to achieve net zero by 2050. This collaboration is a testament to our strong commitment towards providing the best decarbonisation solutions globally.”
The company said discussions had begun with potential offtakers. The Madura area is east of Surabaya and south of Madura island.
Bumi Armada has identified FLNG as a key area of interest in 2023. The company is investigating electric drive for liquefaction trains onboard FLNG vessels.
DMP is a gas trader, which buys gas from a joint venture, Husky CNOOC Madura. The company has previously focused on deliveries via pipeline, so the move into FLNG would be a major step up.
DMP signed a gas transportation agreement with Pertamina Gas in January this year. Pertagas agreed to help the gas trader deliver across Indonesia.
Husky CNOOC began producing at the MBH field in October 2022 and the MDA field in November 2022. The venture’s BD field began producing in 2017.