KUALA LUMPUR: Genting Oil & Gas Ltd (GOGL), via its wholly owned indirect subsidiary Genting Oil Kasuri Pte Ltd (GOKPL) signed a gas sale and purchase agreement (GSA) with a subsidiary of PT Pupuk Indonesia - PT Pupuk Kalimantan Timur - at the 4th International Convention on Indonesian Upstream Oil & Gas 2023 in Bali, Indonesia today.
GOGL is the Genting Group’s oil and gas arm.
The GSA relates to the supply of natural gas from GOGKL’s concession area from the Kasuri Block in West Papua, Indonesia to potential gas buyers, primarily to a Floating Liquefied Natural Gas (LNG) facility, with the supply of 230 million cubic feet per day (mmcfd) for 18 years and the remaining to be supplied to a domestic ammonia and urea (Amurea) plant to be also built in West Papua, with a supply of 101 mmcfd of natural gas for 17 years.
However, the GSA is dependent on certain conditions to be fulfilled by both parties. In the event the GSA becomes effective, the expected commencement date of the supply of natural gas to the Amurea plant will be on Nov 1, 2028. The total volume of natural gas produced under the GSA over the course of 17 years is forecasted at 572.22 million mmbtu. Meanwhile, the FLNG project is expected to achieve first drop of LNG in the first half of 2026.
