BW Group forms joint venture for Indonesian FSRU project

PT AKR Corporindo announced via a stock exchange filing that it and BW entity BW FSRU VII Pte Ltd will each hold a 49% stake in the newly established PT Andalanesa Energi Primer, while the remaining 2% will be allocated to PT Arthakencana Rayatama.

The filing also disclosed that a BW entity has entered into an agreement with HD Hyundai Heavy Industries for the construction of one 170,000-m³ FSRU.

Notably, the South Korean shipbuilding conglomerate announced on 1 July that it had secured an order from an unnamed Asian shipowner for the construction of one FSRU, scheduled for delivery in May 2029. The contract value was estimated at approximately US$320M.

The JV’s FSRU is expected to support the development of the JIIPE LNG terminal project in Indonesia. Indonesian media report that four FSRU units are currently operating in waters around Java, Sumatra and Bali.

BW LNG, a subsidiary of BW Group, recently confirmed an order for two additional LNG carriers at HD Hyundai Samho, exercising options attached to a contract signed last November.

According to the company, the newly ordered vessels will feature an industry-first large-scale three-tank LNG design, providing increased cargo capacity and reduced boil-off rates while maintaining operational flexibility.

BW LNG operates a fleet of 34 LNG carriers and FSRUs.

HD Hyundai is currently the leading FSRU newbuilding player, according to domestic media reports, with 14 vessels secured to date.

The shipbuilder has won contracts for 133 vessels worth US$15.7Bn so far this year, achieving around 67% of its annual order target. The order tally includes 17 LNG carriers.