PETRONAS has awarded two Front End Engineering Design (FEED) contracts to a JGC Corporation-Samsung Heavy Industries consortium and to SAIPEM Spa as part of an international dual FEED design competition for a nearshore liquefied natural gas (LNG) project in Sabah.

The project, with a minimum capacity of 2.0 million tonnes per annum (MTPA) is a first of its kind in Malaysia.

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 (EPCC) phase. The nearshore LNG plant is planned to be Ready for Start Up (RFSU) by end of 2026.

The design and construction of the nearshore plant is expected to be simpler and upon completion, has the potential for improved production uptime as it will be located within a protected bay area as compared to an offshore floating LNG facility in the open seas.

PETRONAS Executive Vice President and Chief Executive Officer of Gas and New Energy Adnan Zainal Abidin said, “PETRONAS continues to provide greater access to cleaner energy sources such as natural gas. The development of Sabah’s first nearshore LNG plant reflects our technological expertise where we continue to innovate modern solutions to monetise gas resources in an optimised and environmental-friendly manner.”

Upon completion, the nearshore LNG plant will increase PETRONAS’ LNG production from floating LNG facilities from 2.7 MTPA to 4.7 MTPA. Currently, PETRONAS operates two floating LNG facilities, the PFLNG SATU and PFLNG DUA, at the Kebabangan and Rotan offshore gas fields respectively.

About Petronas

Established in 1974, Petroliam Nasional Berhad (PETRONAS) is a global energy and solutions company, ranked amongst the largest corporations on Fortune Global 500®️. As an integrated global LNG producer with over 37 years of experience, PETRONAS provides an uninterrupted supply of LNG to more than 25 countries around the world. PETRONAS has safely delivered more than 11,000 cargoes globally, sourced from its portfolio of facilities located in Malaysia, Australia and Egypt. PETRONAS is also the first global energy player to introduce the floating LNG concept in 2016, the PFLNG SATU, and introduced its deep-water FLNG, the PFLNG DUA, in 2021.

About JGC

JGC is a global engineering, procurement, and construction firm committed to delivering a complete range of project services to our clients, while providing safe and cost-effective project execution. Since its founding in 1928, JGC has executed some 20,000 projects across the globe for the refining, LNG, petrochemical, power, pharmaceutical, and mining industries. From conception to commissioning, we partner with our clients to deliver successful engineering, procurement, and construction programs.

About Samsung Heavy Industries

Samsung Heavy Industries has successfully completed many of the world's first and largest shipbuilding and offshore EPC projects, with sole aim to establish global leadership in each of the participating market segments.
Most notably, it has achieved unbeatable leadership in the high-tech high-value shipbuilding sector by maintaining the world’s No. 1 share in the drill ship, LNG carrier and FPSO markets.
The company has developed and built the first Arctic Shuttle-Tanker and LNG-FPSOs in the world, and has pioneered new market developments by developing innovative products such as LNG-FSRU, and various ships for polar applications, Arctic Ice-Breaker Container Ships.
In the offshore facilities sector, the company has fortified its reputation through its excellent technology and rich experience, by successfully delivering the world’s largest semi-submerged offshore drilling platform.

About Saipem

Saipem is an advanced technological and engineering platform for the design, construction and operation of safe and sustainable complex infrastructure and plants. Saipem has always been oriented towards technological innovation and is currently committed, alongside its clients, on the frontline of energy transition with increasingly digitalised tools, technologies and processes that were devised from the outset with environmental sustainability in mind. It is listed on the Milan stock. It operates in over 60 countries around the world with 32 thousand employees from 130 different nationalities.