Page 11 - GLNG Week 17 2022

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Petronas, Sabah sign MoU on

nearshore FLNG development

FLOATING LNG PETRONAS and Sabah Oil & Gas Development engineering and design (FEED) contracts that
Corp. (SOGDC) have signed a memorandum of Petronas awarded to a consortium of JGC and
understanding (MoU) on the development of a Samsung Heavy Industries and to Saipem in
nearshore floating LNG (FLNG) facility in the December as part of a FEED design competition
Malaysian state of Sabah in Borneo. for the project. The FEED design competition
Under the MoU, SOGDC will support Petro- has a duration of 10 months, with Petronas tar-
nas in securing all necessary approvals, permits geting a final investment decision (FID) on the
and other requirements as they work to realise FLNG facility at the end of 2022.
the project, according to local media. If an FID is reached, the winning FEED con-
SOGDC is wholly owned by the Sabah state tractor will be rolled over to the engineering,
government and the MoU represents its lat- procurement, construction and commission-
est step in collaboration with Petronas to drive ing (EPCC) phase. The terminal would then be
natural gas development in the state. The FLNG ready for start-up by the end of 2026, according
project, known as ZLNG, is one of three major to a previous announcement by Petronas.
investment opportunities identified by the Sabah The Malaysian company has touted the near-
government and Petronas in the Sabah Gas Mas- shore FLNG project as the first of its kind in
terplan, which they jointly launched at the start Malaysia, saying the design and construction of
of this year. such a facility would be simpler than that of an
The facility would have a capacity of at least FLNG project intended for open seas. The com-
2mn tonnes per year (tpy) of LNG and officials pany operates two such FLNG projects in open
have said it would cost MYR8.8bn ($2.0bn) to seas at the Kebabangan and Rotan offshore gas
develop. It would be located in the Sipitang Oil fields. ™
and Gas Industrial Park (SOGIP).
The MoU builds on two front-end

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