Mubadala marks first gas at Malaysia's Pegaga
Mubadala Petroleum announced on March 21 it had successfully achieved first production from its Pegaga gas field offshore Malaysia.
The $1bn project lies in 108-metre water depths off the shore of Sarawak, in Malaysia's central Luconia province. Mubadala did not disclose Pegaga's initial flow rate, though the field has a designed production capacity of 550mn ft3/day plus condensate. Mubadala operates the project with a 55% stake, while 25% is held by Petronas and 20% by Shell.
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Gas from Pegaga will run through a 4-km subsea pipeline toward Petronas' liquefaction complex in Bintulu. The 29.3mn metric tons/year LNG facility has struggled to source enough gas to boost LNG output. Throughout most of 2021, Bintulu LNG operated at around 80% of its designed capacity.
Sarawak's offshore gas production this year is expected to be around 39.8bn m3, and this is just short of the 42bn m3 needed to lift Bintulu LNG's output above 95% capacity. Malaysia also has gas production in Sabah state in the northeast of the country. But efforts to lift Sabah gas to Bintulu have been scuppered by constant outages at the 750mn ft3/d Sabah-Sarawak Gas Pipeline (SSGP).
Petronas currently hopes SSGP will be operational again in the second half of this year. Since launching in 2014, SSGP has experienced multiple leaks and explosions.