Tuesday, 25 February 2014

Paradigm shift in LNG business

Petroliam Nasional Bhd (Petronas) has awarded the engineering, procurement, construction, installation and commissioning (EPCIC) contract for its second floating liquefied natural gas facility (PFLNG 2) project, located off the coast of Sabah, after its board reached the final investment decision on the project.

Following its decision made on Jan 23, Petronas awarded the EPCIC job to the consortium of JGC Corp, Samsung Heavy Industries Company Ltd, JGC (Malaysia) Sdn Bhd and Samsung Heavy Industries (M) Sdn Bhd.

The award follows the 2012 dual front end engineering design (FEED) study for the project undertaken by two consortia – the Modec Inc., CB&I Nederland B.V. and Toyo Engineering Corporation consortium and the JGC Corp, Samsung Heavy Industries Company Limited, JGC (Malaysia) Sdn Bhd and Samsung Heavy Industries (M) Sdn Bhd consortium.

The PFLNG 2 project 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 is scheduled to be ready for start-up by early 2018.

Petronas' first floating LNG facility (PFLNG 1) recently started the vessel's keel laying process at the Daewoo Shipbuilding & Marine Engineering (DSME) shipyard in Okpo, South Korea.

The PFLNG 1 will be moored at the Kanowit field, offshore Sarawak, and is designed to produce 1.2 mtpa of LNG. It is scheduled to be ready for start-up by end of 2015.

Once operational, the liquefaction, production and offloading processes of LNG – previously only possible at onshore plants – will now be able to be carried out hundreds of kilometres away from land and closer to the offshore gas fields.



As such, the facilities will 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.

lazada