JGC Corporation announced that, as leader of a consortium with Samsung Heavy Industries Co. Ltd. (SHI), it has received a contract from PETRONAS, Malaysia's state-owned oil company, for the FEED (Front-End Engineering and Design) work for a floating LNG project off the Malaysian coast. The contract calls for FEED work for a floating LNG plant with 1.5 million tons per annual of LNG production capacity and the work is scheduled for completion in the second quarter of 2013. The project will be located off the coast of the state of Sabah, and will be the second floating LNG plant constructed for PETRONAS.

SHI, the consortium partner of JGC on this project, is South Korea's largest general heavy industrial contractor. For this project, JGC will take charge of the engineering for topside including the liquefaction facilities, while SHI will take charge of the engineering for the hull itself.

PETRONAS has awarded two FEED contracts on dual FEED mode. When the FEED is completed in the second half of 2013, PETRONAS will select one of the proposals from the two consortia as the basis for awarding the EPCIC (engineering, procurement, construction, installation and commissioning) portion of the project. LNG production at the plant is scheduled to begin in 2016.

It is believed that JGC was chosen for this contract based on the technical excellence and advanced engineering technology we have built up through the numerous floating LNG feasibility studies we have performed, in consortium with SHI, which has advanced technical expertise and a strong performance record in shipbuilding.

JGC has constructed LNG plants around the world that account for about 30% of current global LNG production. JGC is presently involved in four LNG plant EPC projects in Papua New Guinea, Indonesia, and Australia, respectively, as well as the FEED work for an onshore LNG plant in Malaysia, also for PETRONAS. Putting its utmost efforts into all its current LNG projects, JGC hopes to continue to bolster its reputation as a world-class engineering contractor for LNG plants both onshore and offshore.