GE Oil & Gas announced it will supply its proven gas turbine-driven compressor train and mechanical drive technology to Malaysia’s national oil and gas company, PETRONAS, for a second floating liquefied natural gas (FLNG) facility that is being developed off the coast of East Malaysia.

The latest project marks another major order with PETRONAS under a global frame agreement for equipment supply between the two companies. GE was awarded the contract primarily because its turbomachinery has a successful track record of supporting offshore LNG production.

“We are excited to move ahead with the development of our second FLNG facility that will boost our LNG production to help meet Asia’s growing energy needs,” said Datuk Abdullah Karim, vice president and venture director, LNG Projects (Domestic), Upstream Business, PETRONAS. “This project marks another important step as we seek to position Malaysia as a strong regional and global LNG market player.”

Compression trains are vital elements of the liquefaction process, which cools natural gas to a liquid state. As part of its contract, GE will supply four of its PGT25+G4 gas turbine generator systems and two nitrogen trains featuring two LM6000-PF+ 2BCL907 aeroderivative gas turbines in mechanical-drive mode. Commercial operation is expected to begin in the third quarter of 2017. Once operational in the first quarter of 2018, the second FLNG facility will produce about 1.5 million tons a year (mtpa) of LNG.

For the first time ever, an LM6000 gas turbine is being applied to an FLNG project. The LM6000 gas turbine model, already used for offshore mechanical drive applications, has an overall installed fleet counting more than 1,000 units worldwide. GE’s equipment will be manufactured at the company’s assembly facilities in Florence and Massa, Italy.

“Following up on the turbomachinery we supplied for PETRONAS’ first FLNG facility—one of the first FLNG projects in the world—we are excited our equipment has been selected for their second FLNG as well, illustrating the breadth of LNG production activities we are supporting around the world both onshore and offshore,” said Rafael Santana, vice president and CEO of Turbomachinery Solutions—GE Oil & Gas.

Previously, PETRONAS also had selected GE’s turbocompressor equipment to power the Malaysian national oil and gas company’s first FLNG, which is currently being constructed in South Korea.
The new project will enable offshore LNG production in certain smaller gas fields that are lacking pipelines to an onshore LNG plant. The second FLNG plant will support the industrial sector’s growing demand for natural gas in Peninsular Malaysia, where many power plants and commercial customers are located.

About GE in Malaysia

GE’s footprint in Malaysia began in 1975 with a sales and service center. Today, GE is present in several major locations (Kuala Lumpur headquarters and an aircraft engine maintenance, repair and overhaul Center of Excellence in Subang) as well as key customers sites throughout the country. All of GE’s key businesses (Oil & Gas, Power & Water, Energy Management, Aviation, Healthcare, Transportation and Lighting) are present in Malaysia. The Kuala Lumpur office serves as the company’s ASEAN corporate headquarters as well as the Asia-Pacific headquarters for GE Oil & Gas. GE is committed to contributing to the nation’s sustainable development and prosperity, and is investing in its future with advanced technology solutions and services as a trusted and committed local partner.

About GE

GE (NYSE: GE) works on things that matter. The best people and the best technologies taking on the toughest challenges. Finding solutions in energy, health and home, transportation and finance. Building, powering, moving and curing the world. Not just imagining. Doing. GE works.

About GE Oil & Gas

GE Oil & Gas works on the things that matter in the oil and gas industry. In collaboration with our customers, we push the boundaries of technology to bring energy to the world. From extraction to transportation to end use, we address today's toughest challenges in order to fuel the future.

About Petronas

PETRONAS was incorporated on 17 August 1974 as the national oil company of Malaysia, vested with the entire ownership and control of the petroleum resources in the country. It has since grown from merely being the manager and regulator of Malaysia’s upstream sector into a fully integrated oil and gas corporation, ranked among the FORTUNE Global 500® largest corporations in the world.

See the site of FLNG2 in Malaysia