The contract is for the construction and commissioning of Petronas’ first commercial floating liquefied natural gas (FLNG) facility in Malaysia.
The state-owned oil corporation said in a statement that the contract for the engineering, procurement, construction, installation and commissioning of the project was awarded via its wholly-owned subsidiary, Petronas Floating LNG 1 (L) Ltd.
The FLNG facility is scheduled to be ready by 2015 and would be moored about 180km off the coast of Bintulu, Sarawak. It has been designed to produce 1.2 million tonnes a year (mtpa) of LNG.
“Once on stream, the facility will boost Malaysia’s total LNG production capacity to 26.9 mtpa from 25.7 mtpa currently,” Petronas said.
It said the facility was expected to change the landscape of the LNG business where the liquefication, production and offloading processess of LNG, which was previously only possible at onshore plants, were now able to be carried out hundreds of kilometres away from land and closer to offshore gas sources.