Petronas has announced today their decision to go forward with the building of their second floating liquefied natural gas (FLNG) facility. Once built, “PFLNG 2” will be subsequently moored at the Rotan gas field in deep water Block H, offshore Sabah, Malaysia, and is designed to produce 1.5 million tons per year (mtpa) of LNG.
Winning the Engineering Procurement, Construction, Installation and Commissioning (EPCIC) contract for the new vessel was a consortium consisting of JGC Corporation and Samsung Heavy Industries. The firms beat out a rival consortium comprised of Modec Inc., CB&I Nederland B.V and Toyo Engineering Corporation.
According to an exchange filing today, this order mean 1.56 trillion won (USD $1.46 billion) in new business for Samsung.
Petronas plans for a 2018 start-up of the facility.
Meanwhile, Petronas notes the keel of their first floating LNG facility (PFLNG 1) project has recently been laid at Daewoo Shipbuilding & Marine Engineering 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, 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 – will now be able to be carried out far offshore and closer to the offshore gas fields.
For Petronas, this is the key to unlocking the economic potential of their remote and stranded gas reserves which they note would “otherwise could be uneconomical to develop and evacuate.”