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while Neptune Energy owns 20% and state- would optimise the FPU’s 750 mmcf (21.24
owned Pertamina holds the remaining 15%. mcm) per day of production capacity.
The company said at the time that the pro- Merakes’ production is expected to feed
ject had a guaranteed production capacity of both domestic demand as well as Pertam-
450mn cubic feet (12.74mn cubic metres) per ina’s ageing Bontang liquefied natural gas
day thanks to its five subsea wells. (LNG) plant.
Merakes’ wells have been tied back to a float- Wirato told Reuters this week that Merakes’
ing production unit (FPU) at the Eni-operated production issues could affect Bontang’s output
Jangkrik field, which is located 45 km away in levels. He said: “Maybe [Bontang’s production]
the Muara Bakau block. Merakes is connected will drop a little, or we’ll look for backup from
to the FPU via subsea pipelines, which Eni noted other producers who can supply more.”™

Petronas spearheads LNG

projects in Johor, Sabah

PROJECTS & MALAYSIA’S state-run Petronas has called for The official said on October 26 that front-
COMPANIES expressions of interest (EoIs) to conduct a feasi- end engineering design (FEED) work for the
bility study for a new liquefied natural gas (LNG) 2mn tonne per year (tpy) facility was slated to
storage tank in the south of Johor State. begin this month. The facility is anticipated to
Pengerang LNG (Two) has invited participa- come on stream by the end of 2026, pending a
tion in a non-binding EoI to assess the feasibility final investment decision (FID) being reached
of a third tank at the LNG Regasification Termi- in 2022.
nal in Pengerang, Petronas said in an October The facility will be moored at Petronas
28 statement. Petronas Gas owns a 65% stake in Chemicals Fertiliser Sabah’s new jetty extension
PLNG2. and will be fed by fields that are connected to
Petronas expects the new facility to be com- the Sabah-Sarawak Gas Pipeline (SSGP). Once
pleted by the fourth quarter of 2025, subject to a the project is completed the state’s production
final investment decision (FID) being reached. capacity will climb to 4.7mn tpy.
“The facility will be an effective solution to Noor said: “The nearshore LNG project is
support the anticipated increase in LNG demand an outcome of a joint study between the state
in Asia, as the world transitions towards a cleaner government and Petronas to identify optimal
energy landscape,” Petronas said. gas monetisation options, in order to maximise
The storage expansion project is not the only long-term economic spin-offs that will benefit
LNG project the state major is working on, with the people of Sabah.”
Sabah Chief Minister Hajiji Noor announcing He added: “[The project] is a step in the right
this week that Petrobras was developing the direction as the government continues to pursue
state’s first nearshore LNG facility at the Sipitang more deals to get additional revenue via equity
Oil & Gas Industrial Park (Sogip). participation for Sabah.”™

Week 43 28•October•2021 www. NEWSBASE .com P5