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Malaysia’s Petronas to start operation at second FLNG in Q1 2020

2019/04/26 12:00

 

Malaysia’s state-run Petronas said that the company planned to start operation at a floating LNG (FLNG) facility to be located offshore of the Sabah state in the northern part of Borneo Island from the first quarter in 2020. The facility would be Petronas’s second FLNG, named as “Petronas FLNG Dua”. The LNG production capacity of the “PFLNG Dua” was expected at 1.50 mil mt/year. The existing FLNG facility “PFLNG Satu” had started operation in 2016. The “PFLNG Satu” was the first commercialized offshore natural gas liquefaction and production facility in the world, and its production capacity was at 1.20 mil mt/year. The new “PFLNG Dua” was designed to operate for about 20 years, same as the “PFLNG Satu”. The “PFLNG Dua” was under construction at the shipyard of Samsung Heavy Industries in South Korea. Petronas previously planned to start operation in 2018, but the plan was delayed due to worsening profitability amid an LNG market downturn.

In addition, the existing “PFLNG Satu” initially started operation in the Sarawak state, but Petronas moved the facility offshore of the Sabah state in March 2019. Global LNG demand was expected to increase firmly from now on. In particular, imports to South Asia and Southeast Asia were seen to rise sharply. But besides recent low LNG prices, floating facilities require a high level of technology construction costs are high. From a profitability standpoint, the difficult situation for FLNG would continue for a while.

 

Singapore : Satoshi Hagimoto  +65-6345-9894
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