BW LNG's new FSRU order will add critical capacity for LNG regasification in Indonesia's JIIPE Gresik Special Economic Zone, with the vessel expected to enter commercial service in the third quarter of 2029.
FSRU Newbuild at HD Hyundai
According to Splash247, brokers report that BW LNG, the Singapore-based gas shipping unit of BW Group, has ordered a 174,000 cubic meter floating storage and regasification unit (FSRU) from HD Hyundai Heavy Industries in South Korea. The vessel is priced at roughly $320 million and is scheduled for delivery in the second quarter of 2029.
Joint Venture and Project Details
The FSRU is tied to a new floating regas project in Indonesia developed jointly by PT AKR Corporindo (AKRA) and BW FSRU VII, a BW Group entity. The two companies have established a joint venture, PT Andalanesa Energi Primer, to develop an LNG FSRU project for the JIIPE Gresik Special Economic Zone in East Java, Indonesia. Ownership in the venture is structured as follows:
| Entity | Stake |
|---|---|
| PT AKR Corporindo (AKRA) | 49% |
| BW FSRU VII (BW Group) | 49% |
| PT Arthakencana Rayatama (AKRA's parent) | 2% |
The FSRU is expected to support the development of LNG infrastructure at the JIIPE LNG terminal project. Commercial operations are targeted for the third quarter of 2029.
BW LNG's Recent Newbuilding Activity
BW LNG, which controls a fleet of more than 30 LNG carriers and FSRUs, has also been active in conventional LNG carrier newbuildings this year. Splash247 reported in May that BW LNG had firmed up two 174,000 cbm vessels at HD Hyundai Samho for delivery in the second half of 2029. Those ships followed an earlier two-vessel LNG carrier deal at the same yard in November of the previous year.
Implications for LNG Logistics
The addition of this FSRU will enhance regasification capacity at the JIIPE terminal, supporting the energy needs of the East Java industrial zone. For LNG carriers and terminal operators, this represents expanded infrastructure for natural gas imports in Indonesia. The vessel's delivery in 2029 suggests a long-term commitment to the region's LNG supply chain. BW LNG's continued orders at HD Hyundai, including both FSRUs and conventional carriers, signal sustained investment in the LNG shipping sector.
Watch list: Future milestones include the start of construction at HD Hyundai, the joint venture's progress on the JIIPE terminal, and any additional FSRU or LNG carrier orders from BW Group as the 2029 delivery window approaches.
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