FLNG leasing deal shakes up LNG market: who gains most?
Chinese and Malaysian firms team up to offer floating LNG units under lease-and-operate model.
Three major energy contractors have joined forces to expand the floating liquefied natural gas (FLNG) market through a lease-and-operate model. China’s Wison New Energies, Malaysia’s Bumi Armada, and FPSO Ventures signed a strategic cooperation agreement to combine their expertise in FLNG design, construction, asset ownership, and long-term operations.
The partnership aims to offer developers a turnkey solution, allowing them to monetize offshore gas reserves without the upfront capital expenditure of owning FLNG infrastructure. While the agreement does not specify any projects, capacity targets, or financial terms, it positions the alliance as a provider of flexible, service-based FLNG solutions.
Wison New Energies, based in Shanghai, has been strengthening its FLNG capabilities. Earlier this month, the company secured rights to integrate Shell’s dual mixed refrigerant liquefaction technology into its future FLNG designs. It is also currently constructing the 1.2 million tonnes per annum Alam Guyub FLNG for Genting’s Kasuri development in Indonesia. Notably, an FPSO Ventures joint venture has already secured the long-term operations and maintenance contract for that project.
Natural Gas
Bumi Armada brings extensive experience in developing, owning, and operating floating production facilities, while FPSO Ventures specializes in the operations and maintenance of offshore production units. This collaboration mirrors the established model in the floating production, storage, and offloading (FPSO) sector, where companies lease vessels on a service basis rather than purchasing them outright.
The alliance reflects growing demand for cost-effective, adaptable solutions in the FLNG market. As the sector evolves, lease-and-operate models could become a preferred option for developers seeking to reduce financial risk while accelerating project timelines.
Market implications of the partnership: FLNG
The agreement signals a shift toward more flexible FLNG deployment strategies. By offering infrastructure as a service, the three companies aim to lower barriers for developers, particularly in regions with untapped offshore gas reserves. The partnership also strengthens Wison’s position in the broader floating energy sector, as the company recently secured an engineering, procurement, construction, installation, and commissioning (EPCIC) contract for Eni and Altera Infrastructure’s Baleine Phase 3 FPSO off Côte d’Ivoire.
With no immediate projects announced, the alliance’s success will depend on securing contracts in a competitive market. However, the combined expertise of Wison, Bumi Armada, and FPSO Ventures could make them a formidable player in the next wave of FLNG developments.
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