ASIA

Petronas starts second FLNG project

MALAYSIAN petroleum player Petronas has sanctioned development of a second floating LNG plant, PF...

Petronas starts second FLNG project

The engineering, procurement, construction, installation, commissioning contract was won by a joint venture of JGC Corporation and Samsung Heavy Industries plus both of their Malaysian subsidiaries.

The JV and the rival consortium of Modec Inc, CB&I Nederland BV and Toyo Engineering Corporation were both part of Petronas' 2012-awarded front-end engineering and design study for the FLNG development.

Targeting 1.5 million tonnes per annum from a mooring at the Rotan gas field off the Malaysian coast of Sabah, the second FLNG plant has successfully passed the final investment decision milestone and is expected to start up by early 2018.

Petronas' first FLNG plant will be moored at the nearby Kanowit field and is targeting 1.2Mtpa with first production by late 2015.

Last month the development of the FLNG vessel reached a construction milestone with shipbuilder Daewoo starting work on the keel laying process.

"Once operational, both facilities are expected to change the landscape of the LNG business where the liquefaction, production and offloading processes of LNG - previously only possible at onshore plants - will now be able to be carried out hundreds of kilometres away from land and closer to the offshore gas fields," Petronas said.

"As such, the facilities will play a significant role in Petronas' efforts to unlock the gas reserves in Malaysia's remote and stranded fields, which otherwise could be uneconomical to develop and evacuate."

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