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    Petronas, Sabah sign $2bn FLNG deal

Summary

The project is currently under the front-end engineering and design (Feed) stage and the final investment decision (FID) is expected by the end of this year.

by: Shardul Sharma

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Petronas, Sabah sign $2bn FLNG deal

Petronas and Sabah Oil & Gas Development Corp (SOGDC) have signed a memorandum of understanding (MoU) pertaining to Sabah’s first near-shore floating LNG facility, The Star reported on April 22. The 8.8bn ($2bn) ringgit facility will be known as ZLNG project.

Under the MoU, the companies would cooperate in realising the project, which includes SOGDC assisting Petronas in securing all necessary approvals, permits and utilities.

The project is currently under the front-end engineering and design (Feed) stage and the final investment decision is expected by the end of this year. Petronas in December 2021 had awarded two Feed contracts to a JGC Corporation-Samsung Heavy Industries consortium and to Saipem for the project.

Upon completion, the nearshore LNG plant will increase Petronas’ LNG production from floating LNG facilities from 2.7mn mt/yr to 4.7mn mt/yr. At present, the company operates two floating LNG facilities, the PFLNG Satu and PFLNG Dua, at the Kebabangan and Rotan offshore gas fields respectively.