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Air Products supply Petronas with LNG technology

02nd May 2014

Air Products has signed an agreement with JGC Corporation to provide its proprietary LNG technology, equipment and process license for Petronas' second floating LNG project (PFLNG 2) to be located off the coast of Malaysia.

Air Products supply Petronas with LNG technology
Air Products' LNG technology has been selected for all three off-shore FLNG projects announced and in construction around the world to date.

Air Products' equipment and technology will be used in the production of 1.5 million tons per year of LNG for project ownerPetronas, the national oil and gas company of Malaysia. Air Products' LNG technology has been selected for all three off-shore FLNG projects announced and in construction around the world to date. Commercial production is set to commence in 2018.

"In our LNG history as a company we have always tried to stay ahead of trends in the market and we are pleased that we have been selected for Petronas' second FLNG project, as well as the other two global off-shore LNG projects thus far that have been announced.

"The PFLNG 2 project, much like Petronas' first floating LNG (PFLNG 1) project, is an important one in the effort to monetize significant off-shore natural gas reserves that would otherwise be unreachable. We are pleased our technology was again selected as the solution to this effort," said Bill Kennington, major account manager - LNG with Air Products.

"In a project of this complexity, I trust that we have the best expertise from around the world to think of innovative solutions and game changing ideas to harness the best of engineering, design, and manufacturing equipment to ensure safety, quality, as well as a technically and commercially viable project," said Datuk Abdullah Karim, vice president and venture director of LNG Projects - Domestic, Petronas.

PFLNG 2, which will be drawing natural gas from the Rotan Field in the South China Sea, offshore Sabah, Malaysia, will use Air Products' AP-N LNG process and equipment. Air Products will manufacture this proprietary equipment including coil wound heat exchangers and compressor-expanders at facilities in the United States, and the economiser cold boxes in Tanjung Langsat, Malaysia. The proprietary equipment will be shipped from the Air Products manufacturing facilities for assembly into modules and then installed on the PFLNG 2 vessel.

The AP-N LNG is ideally suited for small scale FLNG applications. It is the same technology that was selected for the earlier announced Petronas PFLNG 1 Project, which is currently under construction in South Korea. The use of the AP-N LNG process and equipment for FLNG builds on the successful implementation of the nitrogen recycle section of Air Products' AP-X LNG Process and Equipment, which have been operating reliably for nearly five years in Qatar. The AP-N LNG process and equipment can be configured in an all-nitrogen recycle process for a single train at a nominal 1.5 million tons per annum, or it can be boosted in capacity with the addition of pre-cooling.

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