Petronas awards two FEED contracts for nearshore LNG project in Sabah

Malaysia’s Petronas has awarded two front end engineering design (FEED) contracts to a JGC Corporation-Samsung Heavy Industries consortium and to Saipem as part of an international dual FEED design competition for nearshore liquefied natural gas (LNG) project in Sabah. 

The FEED design competition is expected to take place over the course of 10 months, with the final investment decision planned for the end of 2022. The winning FEED contractor will be rolled over to the engineering, procurement, construction and commissioning phase. 

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. 

The nearshore LNG plant is planned to be ready for start-up by the end of 2026. Upon completion, the plant will increase Petronas’ LNG production from floating LNG facilities from 2.7m tonnes per annum to 4.7m. Currently, Petronas operates two floating LNG facilities, the PFLNG Satu and PFLNG Dua, at the Kebabangan and Rotan offshore gas fields, respectively. 

Adis Ajdin

Adis is an experienced news reporter with a background in finance, media and education. He has written across the spectrum of offshore energy and ocean industries for many years and is a member of International Federation of Journalists. Previously he had written for Navingo media group titles including Offshore Energy, Subsea World News and Marine Energy.
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