Petronas awards Feed contracts for nearshore LNG project in Sabah

Malaysian state-run Petronas has awarded two front end engineering design (Feed) contracts to a JGC Corporation-Samsung Heavy Industries consortium and to Saipem for a nearshore LNG project in Sabah, the company said on December 1.

The project, with a minimum capacity of 2mn metric tons/year, is a first of its kind in Malaysia, it said. The Feed design competition is expected to take place over the course of 10 months with the final investment decision (FID) planned for end of 2022. 

Subject to FID, the winning Feed contractor will be rolled over to the engineering, procurement, construction and commissioning phase. The nearshore LNG plant is planned to be ready for start-up by end of 2026, Petronas said. 

Upon completion, the nearshore LNG plant will increase Petronas’ LNG production from floating LNG facilities from 2.7mn mt/yr to 4.7mn mt/yr. At present, the company operates two floating LNG facilities, the PFLNG Satu and PFLNG Dua, at the Kebabangan and Rotan offshore gas fields respectively.