PETRONAS begins construction of third FLNG facility

PETALING JAYA: Petroliam Nasional Bhd (PETRONAS) has commenced the construction of its groundbreaking nearshore floating liquefied natural gas (FLNG) facility.

A steel cutting ceremony for the nearshore FLNG facility was held at the Samsung Heavy Industries (SHI) Shipyard in Geoje Island, South Korea.

The event marked the beginning of the construction phase of the mega project, which will become Malaysia’s first nearshore FLNG facility once in operation, said PETRONAS in a statement.

“Focusing on sustainability and innovation, the upcoming nearshore FLNG facility incorporates technologies such as energy-efficient power generation systems and aero-derivative gas turbines to reduce its carbon footprint.

“Upon completion, the nearshore FLNG facility will be moored at the Sipitang Oil and Gas Industrial Park and is expected to attract new investments to the area.”

In highlighting the transformative potential of the nearshore FLNG facility, PETRONAS chief operating officer and executive vice-president and chief executive officer of gas business, Adnan Zainal Abidin said: “Together with our partners in Sabah, we look forward to unlocking Sabah’s gas reserves in an optimised and environmentally sustainable manner, aligned with our efforts to provide energy security and position Malaysia as a key global hub for lower-carbon energy.

“The nearshore FLNG facility is our latest advancement in Floating LNG technology and the culmination of expertise that we have gained from PFLNG Satu and PFLNG Dua.”

The third FLNG facility by PETRONAS is designed to produce up to two million tonnes per annum of LNG and is targeted to commence commercial operations by the second half of 2027.