Petronas Begins Building Malaysia’s First Nearshore Floating LNG Facility

Petronas has officially commenced the construction of its nearshore floating liquefied natural gas (FLNG) facility which is being constructed at the Samsung Heavy Industries (SHI) Shipyard in Geoje Island, South Korea.

The event marks the beginning of the construction phase of the megaproject, which will become Malaysia’s first nearshore FLNG facility once in operation. 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 (SOGIP) 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 & 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.”

This third FLNG facility is designed to produce up to 2.0 million tonnes per annum (MTPA) of LNG and is targeted to commence commercial operations by the second half of 2027.

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