Malaysian state energy company Petronas has confirmed the award of two front-end engineering design (FEED) contracts, to a JGC-Samsung Heavy Industries consortium and to Saipem, as part of an international dual FEED design competition for its nearshore floating liquefied natural gas (FLNG) project in Sabah in Malaysia.
The project, with a minimum capacity of 2 million tonnes per annum (MTPA) is a first of its kind in Malaysia, Petronas said today.
The FEED design competition is expected to take place over the course of ten months with the final investment decision (FID) planned for end of 2022, added Petronas.
Subject to FID, the winning FEED contractor will be rolled over to the engineering, procurement, construction and commissioning (EPCC) phase. The FLNG project, which Petronas refers to as a “nearshore liquefied natural gas (LNG) plant” is planned to be ready for start-up by end of 2026.
“The design and construction of the nearshore plant is expected to be simpler and upon completion, has the potential for improved production uptime as it will be located within a protected bay area as compared to an offshore floating LNG facility in the open seas,” said Petronas.
“Petronas continues to provide greater access to cleaner energy sources such as natural gas. The development of Sabah’s first nearshore LNG plant reflects our technological expertise where we continue to innovate modern solutions to monetise gas resources in an optimised and environmental-friendly manner,” said Petronas executive vice president and chief executive officer of gas and new energy Adnan Zainal Abidin.
Upon completion, the nearshore LNG plant will increase Petronas’ LNG production from floating LNG facilities from 2.7 MTPA to 4.7 MTPA. Currently, Petronas operates two floating LNG facilities, the PFLNG SATU and PFLNG DUA, at the Kebabangan and Rotan offshore gas fields respectively.