Petronas and its unit, MISC Bhd, have awarded a foreign consortium consisting of French-based Technip SA and South Korean Daewoo Shipbuilding & Marine Engineering Co Ltd a key engineering contract for a floating liquefied natural gas (FLNG) unit in Malaysia.
Technip said in a statement issued via its website that the contract involved front-end engineering and design (FEED) for a FLNG unit with annual capacity of one million tonnes.
The contract is scheduled to be completed by the second half of this year.
“This strategic project combines technologies and know-how from Technip's three business segments onshore process of natural gas liquefaction, offshore floating facilities and subsea infrastructures,” Technip said.
The statement did not provide any contract value.
Both Petronas and MISC officials could not be reached for comment as yesterday was a public holiday in Kuala Lumpur while Technip did not respond to e-mailed questions.
Technip, which provides solutions and technology for project management, engineering and construction in the oil and gas industry, has previously been awarded FEED contracts for FLNG units by other oil majors.
In December 2009, it won a FEED contract for a proposed FLNG by Brazilian federal energy company Petrobras and was also part of a consortium awarded a FEED contract for a FLNG by Shell Gas & Power Developments BV in mid 2009.
Last August, Technip entered into an agreement with MISC and its subsidiary, Malaysia Marine and Heavy Engineering Holdings Bhd (MHB), to form a long-term strategic collaboration.
The collaborative areas include working jointly on onshore and offshore projects, designing and building offshore platforms, exchanging expertise and developing technology.
To cement the collaboration, Technip became a cornerstone investor with a 8% stake in MHB when the latter undertook an initial public offering late last year before its listing on the Main Market of Bursa Malaysia.
Technip has worked with the MISC group previously and is currently co-contractors with a MHB unit for Petronas' onshore and offshore facilities in Asia.
With presence in 48 countries, Technip has operating centres and industrial assets (manufacturing plants, spoolbases and construction yard) on five continents, and operates its own fleet of specialised vessels for pipeline installation and subsea construction.
The company has integrated capabilities and expertise in underwater infrastructures, offshore facilities and large processing units and plants on land.
