December 10, 2016, Saturday
KUCHING: Petroliam Nasional Bhd’s (Petronas) first floating liquefied natural gas (LNG) facility, PFLNG Satu has achieved an industry breakthrough with the successful production of its first drop of LNG from the Kanowit gas field, offshore Sarawak on 5 December 2016.
The operational milestone marks a decade long journey for Petronas since conceptualising a floating LNG facility to maximise the potential of remote and stranded gas reserves to deliver a game changer in the global LNG business.
Petronas’ acting vice president LNG assets, development and production Adnan Zainal Abidin said the first drop of LNG from PFLNG Satu has realized the technological aspirations of the company to tap hydrocarbons and produce LNG close to the source.
“At 365 metres long and with 22 modular systems, PFLNG Satu is an engineering marvel that brings together the liquefaction, production, storage and offloading processes of LNG to the offshore gas field.
“We have successfully stretched the limits of our abilities with floating LNG technology to maintain our technical edge as a key LNG supplier,” said Adnan.
PFLNG Satu reached its final stages of Commissioning and Startup with the introduction of gas from the KAKG-A central processing platform at the Kanowit gas field on 14 November 2016. The gas is treated and liquefied via its mitrogen-based Liquefaction Unit – the heart of PFLNG Satu, and processed into the first drop of LNG.
With a processing capacity of 1.2 million tonnes per annum (mtpa), operating at water depths between 70 metres to 200 metres deep, PFLNG Satu is expected to lift its first cargo and achieve commercial operations in the first quarter of 2017.
The floating LNG facility will grow Petronas’ global LNG portfolio as a leader in FLNG technology and enhance its reputation as a preferred and reliable LNG supplier.
Meanwhile, in a separate statement, Petronas has confirmed that it has been awarded deep water Block 4 and Block 5 in the Gulf of Mexico’s Salina Basin, following Mexico’s first ever auction of its deep water exploration areas.
Block 4 has been awarded to a 50:50 partnership between PC Carigali Mexico Operations, SA de CV (Petronas Mexico), a wholly owned subsidiary of Petronas, and Sierra Oil & Gas S de RL de CV (Sierra).
Block 5, on the other hand, was awarded to a consortium led by Murphy Sur, S de RL de CV (30 per cent), with partners Petronas Mexico (23.34 per cent), Ophir Energy (23.33 per cent) and Sierra Offshore Exploration (23.33 per cent).
Petronas Mexico will be the operator of Block 4, an area of about 2,600 square kilometres in water depths of between 800 metres and 1,600 metres.
The initial exploration period for the block is four years where Petronas Mexico and Sierra will concentrate on seismic data acquisition and processing.
Block 5, which covers an area of about 2,600 square km in water depths of 700 metres to 1,100 metres, will be operated by Murphy Sur, with an initial exploration period of also four years including a work program commitment of one well.
Petronas’ Vice President of Exploration, Upstream, Emeliana Rice-Oxley conveyed appreciation towards Mexico’s authorities for the opportunity to participate in the bid and the tender process.
“Petronas’ entry into Mexico’s deep water arena provides a strategic fit for our business growth, focusing on upstream exploration opportunities and portfolio with potential for long-term value,” said Rice-Oxley.