Petronas moves on second Floating LNG unit
On September 2012, JGC Corporation (JGC) from Japan and Samsung Heavy Industries (SHI) from South Korea signed a contract with the Malaysian national oil company Petronas for the front end engineering and design (FEED) of a new floating liquefied natural gas (FLNG) unit.
Malaysia waters is rich of small or medium size natural gas offshore fields for which the conventional scheme including offshore platform for gas processing, export pipeline to shore, onshore liquefaction plants (LNG trains) is not economically viable.
In parallel Malaysia is among the few countries in the world, which are today exporting natural gas but may turn to become net importer or just balanced in 2015 because of the development of its domestic market and petrochemical industry with giant projects such as the Petronas Refinery and Petrochemical Industry Development (RAPID).
In this context, Petronas is considering the floating LNG as the perfect solution to match with the size of the natural gas fields, to save additional infrastructures, the short cycle time from the the final investment decision (FID) to the commercial operations.
In April 2012, Petronas awarded to the consortium made of Technip from France and Daewoo Shipbuilding & Marine Engineering (DSME) from South Korea a service contract for engineering, procurement, construction, installation, commissioning (EPCIC) for its first Floating LNG.
It means that Petronas signed several FEED contracts, two in this case, with different teams of engineering companies to submit their best technical and commercial offer.
Petronas is expecting this FEED work to be completed on second quarter of 2013.
At that stage, Petronas will evaluate the two offers in competition and will select one consortium to convert the FEED into an engineering, procurement, construction, installation, commissioning (EPCIC) contract.
JGC and Samsung in consortium for Sabah FLNG
The Japanese JGC is leading the consortium made with Samsung Heavy Industries where:
– Samsung Heavy Industries is engineering the hull, all the marine equipment and supporting infrastructure in the vessel.
SHI is South Korea‘s largest general heavy industrial contractor and benefits from its on going experience with Technip on the first Floating LNG unit.
Currently, JGC is involved in four EPC contract in Papua New Guinea, Indonesia and Australia.
Designed to fit on a barge, the processing equipment are mounted on the deck of the barge where acid gases and moisture are removed from the natural gas.
Through this competitive FEED process, Petronas expects to save time on the bidding phases as the number of the potential tendering companies is rather short anyway.