JGC Corp, Samsung Heavy secure Petronas floating LNG job

by **hlk** Thu 13 Feb 2014, 17:37

KUALA LUMPUR: A consortium including JGC Corporation and Samsung Heavy Industries Company Ltd has bagged a contract from Petroliam Nasional Bhd to build its second floating liquefied natural gas facility (PFLNG 2) project off Sabah.

The national oil company said on Thursday it had issued a letter of award for the engineering procurement, construction, installation, commissioning (EPCIC) contract to the consortium of JGC Corp, Samsung Heavy Industries, JGC (Malaysia) Sdn Bhd and Samsung Heavy Industries (M) Sdn Bhd.

Petronas's board approved the final investment decision for the project on Jan 23.

The FID and the EPCIC contract award mark a significant milestone in the progress of the PFLNG 2 project, it said.

The facility will be moored at the Rotan gas field in deep water Block H, offshore Sabah and is designed to produce 1.5 million tonnes a year (mtpa) of LNG. It is scheduled to be ready for start-up by early 2018.

Petronas said the EPCIC contract award followed the 2012 dual front end engineering design study for the project undertaken by two consortia. The first was the Modec Inc., CB&I Nederland B.V and Toyo Engineering Corporation consortium and the second of JGC Corporation-Samsung Heavy Industries consortium.

As for Petronas' first floating LNG facility project (PFLNG 1), work on the vessel's keel laying at the Daewoo Shipbuilding & Marine Engineering (DSME) shipyard in Okpo, South Korea had started.

The PFLNG 1 will be moored at the Kanowit field, off Sarawak and is it designed to produce 1.2 mtpa of LNG. It is scheduled to be ready for start-up by end of 2015.

"Once operational, both facilities are expected to change the landscape of the LNG business where the liquefaction, production and offloading processes of LNG -- previously only possible at onshore plants - will now be able to be carried out hundreds of km away from land and closer to the offshore gas fields.

"As such, the facilities will play a significant role in Petronas' efforts to unlock the gas reserves in Malaysia's remote and stranded fields which otherwise could be uneconomical to develop and evacuate," it said.