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Petronas accomplishes final decision on second floating LNG project

18th February 2014

Petronas reaches the Final Investment Decision for a second floating liquefied natural gas facility project located off the coast of Sabah in Malaysia

Petronas achieves FID for a second floating liquefied natural gas facility project

Petronas has achieved the Final Investment Decision (FID) for its second floating liquefied natural gas facility (PFLNG 2) project, which is located off the coast of Sabah in Malaysia.

The FID was authorized by the Petronas board in January 2014.  

In addition, Petronas issued an award letter to the Engineering Procurement, Construction, Installation, Commissioning (EPCIC) contract for the project to the consortium of JGC Corporation, Samsung Heavy Industries Company Limited, JGC and Samsung Heavy Industries.

The FID and the EPCIC contract indicate a milestone in the progress of the PFLNG 2 project. The facility will be secured at the Rotan gas field in deep water Block H, offshore Sabah. It is also designed to produce 1.5 million tonnes a year (mtpa) of LNG.  

The vessel is scheduled to be ready by early 2018.

Another Petronas floating LNG facility (PFLNG 1) project accomplished a construction objective with the start of the vessel’s keel laying process at the Daewoo Shipbuilding & Marine Engineering (DSME) shipyard in Okpo, South Korea.  

The PFLNG 1 will be situated at the Kanowit field, offshore Sarawak, and is estimated to produce 1.2 mtpa of LNG. The vessel is expected to be ready by end of 2015.

Once both facilities are fully functional, they are expected to change the way LNG business is handled where the liquefaction, production and offloading processes of LNG will now be able to take place hundreds of kilometres away from land and closer to the offshore gas fields. 

The vessels will also be vital to efforts by Petronas in releasing the gas reserves in Malaysia’s remote field, which have been considered “uneconomical to develop and evacuate.”

 

 

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