Summary of HD Hyundai's FSRU Contract for Indonesia LNG Project

South Korea's HD Hyundai Heavy Industries has secured a 492.8 billion won (US$319.7 million) contract to build a new floating storage and regasification unit (FSRU) for an undisclosed Asian client, which is understood to be destined for a liquefied natural gas (LNG) import project in Java, Indonesia. The project is being developed by a joint venture (JV) between Indonesia's AKR Corporindo (AKRA) and Singapore-based BW Group, named Andalanesa Energi Primer. Under the JV structure, BW and AKRA will each contribute 49% of the capital, while AKRA's parent company, Arthakencana Rayatama, will hold the remaining 2%.

The FSRU will have a capacity of approximately 170,000 cubic metres and is designed to support the development of LNG infrastructure at the JIIPE LNG terminal project within the Gresik Special Economic Zone. AKRA is targeting the start of commercial operations for the project in the third quarter of 2029. According to HD Hyundai's stock exchange filing, the contract spans a three-year period until 31 May 2029, with payments to be made based on construction progress.

HD Hyundai is an experienced builder of floating units and FSRU terminals. In May, the company launched an FSRU for Poland's Gdansk terminal, which is also 170,000 cubic metres and is expected to begin regasification operations in the first quarter of 2028. Additionally, HD Hyundai is reportedly competing for Chevron's Aphrodite floating production unit offshore Cyprus and Woodside's Browse FPSOs in Australia. Meanwhile, compatriot Samsung Heavy Industries recently secured a separate contract for Petronas Gas' 484.8 billion won (US$328.14 million) FSRU offshore Malaysia in May.