The steel cutting signifies the start of a mega-construction phase of the hull and topsides of the PFLNG2 with a collective weight of 152,000 tonnage.

Petronas vice president and venture director of LNG projects - domestic, Datuk Abdullah Karim, said at the ceremony at the Samsung Heavy Industries Shipyard in Geoje Island that the Asian major had made a "bold decision" in January 2014 to make its final investment decision for the PFLNG2 project.

"The expectation is for PFLNG2 to embark on a technology solution to monetise a wider range of stranded gas fields when it is commissioned in 2018," he said.

SHI president Dae-Yong Park said he was confident that the company could deliver the FLNG on time.

"With top global safety and offshore construction expertise, I assure that we can overcome any challenges during the construction through mutual cooperation," he said.

Petronas' second FLNG facility will enable the liquefaction, production and offloading processing of natural gas in the Rotan field, 130km offshore Sabah.

PFLNG2 will have a capacity of 1.5MMtpa.