Petronas reaches FID for its second FLNG

Published: 2014/02/13

[Business Times]

Petroliam Nasional Bhd (Petronas) has reached the final investment decision (FID) for its second floating liquefied natural gas facility (PFLNG 2) project, offshore Sabah, and scheduled for start-up by early 2018.

In a statement today, Petronas said subsequent to the approval, it has issued a letter of award for the engineering procurement, construction, installation and commissioning (EPCIC) contract for the project to the consortium of JGC Corporation, Samsung Heavy Industries Company Limited, JGC (Malaysia) Sdn Bhd and Samsung Heavy Industries (M) Sdn Bhd.

“The FID and the EPCIC contract award mark a significant milestone in the progress of the PFLNG 2 project.

“The facility will be moored at the Rotan gas field in deep water Block H, offshore Sabah and is designed to produce 1.5 million tonnes a year (mtpa) of LNG,” it added.

Meanwhile, Petronas said its first floating LNG facility project, PFLNG 1, recently achieved another key construction milestone, with the commencement of the vessel’s keel laying process at the Daewoo Shipbuilding and Marine Engineering (DSME) shipyard in Okpo, South Korea.

It said the facility, scheduled for start-up by the end of 2015,
will be moored at the Kanowit field, offshore Sarawak, and is designed to produce 1.2 mtpa’s of LNG.

“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, can now be carried out hundreds of kilometres away from land and closer to the offshore gas fields,” Petronas

It added that the facilities would 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.– Bernama

Read more: Petronas reaches FID for its second FLNG


Additional News:

Murphy, Petronas sanction Malaysia FLNG project, 2018 startup targeted

Singapore (Platts)–3Feb2014/1206 am EST/506 GMT


A final investment decision for the floating LNG liquefaction project at the Rotan field in Malaysia has been reached, and it is on track to achieving first gas by 2018, US company Murphy Oil said Thursday during a presentation to discuss its 2013 financial results.

Murphy operates Block H offshore Sabah, where the gas will be sourced, while Malaysia’s state-owned Petronas will operate the 1.5 million mt/year FLNG facility.

On a call with analysts, Murphy CEO Roger Jenkins said the FLNG project “is now fully sanctioned by both parties and the oil-linked gas terms agreed. This is a major milestone for both companies.”

Petronas had said in June last year that it was aiming for FID by the end of 2013.

Jenkins said the project will be a phased development centered around the Rotan discovery and gas resources from three satellite fields — Alum, Bemban and Buluh.

Petronas awarded the front-end engineering and design contract for the FLNG plant to a consortium comprising Japan’s Mitsui Ocean Development and Engineering IHI and Toyo Engineering and US-based CB&I in September 2012.

“We are planning on first gas in 2018 with a 10-year peak gas rate near 207 million [cubic feet] a day gross or 150 million [cubic feet] per day net,” Jenkins said.

This will be Petronas’ second FLNG plant in Malaysia, after it reached an FID in 2012 on a 1.2 million mt/year plant at the Kanowit field offshore Sarawak.

Once onstream, the two FLNG plants will take Malaysia’s total LNG production to 28.9 million mt/year, Arif Mahmood, Petronas’ vice-president for corporate and strategic planning, had said in June 2013. The LNG produced from the FLNG plants could be sold in the domestic market or overseas, Arif said then.

Meanwhile in neighboring Brunei, Murphy said it has opened up a new gas play with three discoveries in the deepwater CA-2 block, where it has a 30% working interest alongside Petronas and state-owned PetroleumBRUNEI.

“We’ve successfully followed up the Kelidang discovery in 2013, with two more gas discoveries at Keratau and Kempas at the end of the year … We now see a potential resource site here of up to 2 Tcf gross, with additional prospects to drill,” Jenkins said.

A Murphy corporate presentation last month listed feeding the gas to an existing LNG plant or developing a new FLNG project as the two options for field development.

–Song Yen Ling,
–Edited by Deepa Vijiyasingam,



About artidj

I started working as a field engineer in Oil & Gas industry back in 1996. I do this news clipping of the industry and the geography I am interested in, mainly for my own information. I'm glad you find it useful.
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