BW LNG has reportedly awarded a contract to South Korea’s HD Hyundai Heavy Industries for the construction of a new 174,000-cubic metre floating storage and regasification unit (FSRU), strengthening its presence in Indonesia’s growing LNG infrastructure sector.
According to shipbroking reports, the vessel is valued at approximately US$320 million and is scheduled for delivery in the second quarter of 2029.
The new FSRU will support BW Group’s LNG regasification project in Indonesia through a joint venture with PT AKR Corporindo. The partners have established PT Andalanesa Energi Primer to develop an LNG FSRU project serving the Java Integrated Industrial and Ports Estate (JIIPE) Special Economic Zone in East Java.
Under the joint venture structure, BW Group subsidiary BW FSRU VII and AKRA will each hold a 49% stake, while the remaining 2% will be owned by AKRA’s parent company, PT Arthakencana Rayatama.
The FSRU will play a key role in the JIIPE LNG terminal project, providing LNG import, storage and regasification services to support industrial and energy demand in the region. Commercial operations are targeted to commence in the third quarter of 2029.
The latest order further expands BW LNG’s newbuilding programme. The company, which operates a fleet of more than 30 LNG carriers and FSRUs, has also been actively investing in conventional LNG carriers. Earlier this year, it confirmed orders for two 174,000-cubic metre LNG carriers at HD Hyundai Samho for delivery in the second half of 2029, following an earlier two-vessel order placed in late 2025.
The new FSRU project underscores the growing demand for floating LNG import infrastructure across Southeast Asia as countries seek flexible and lower-emission energy solutions while expanding natural gas access.