Malaysia’s Bumi Armada eyes LNG development in Indonesia
Malaysia’s Bumi Armada has signed a non-binding agreement with Indonesian companies Pertamina International Shipping and Davenergy Mulia Perkasa (DMP) to develop and commercialise LNG from the Madura gas field and its surrounding fields off East Java, Bumi announced on September 13.
The Madura gas field is located in the Madura Strait, off the coast of East Java, Indonesia, and is estimated to contain 1.4 trillion ft3 of gas reserves.
Under the terms of the agreement, Bumi Armada, Pertamina International Shipping, and DMP will work together to design, engineer, construct, install, commission, hook up, and operate a floating natural gas liquefaction and storage facility. The facility will be located near the Madura gas field and will have a capacity of up to 1mn tonnes/year of LNG.
Preliminary discussions have been initiated with several potential off-taker clients and the first shipment of LNG is anticipated to take place three years after making the final investment decision, Bumi said.
Bumi is a provider of floating infrastructure systems and owns and operates the only floating LNG terminal in Malta. Pertamina International Shipping is a shipping and marine logistics subholding of Pertamina, Indonesia's state-owned energy company. Pertamina International Shipping has a fleet of over 200 vessels and provides a wide range of services, including tanker transportation, dry bulk transportation, and offshore support services. DMP is an Indonesian natural gas trading company.