Petronas and Sabah Oil & Gas Development Corporation (SOGDC) have signed a Memorandum of Understanding (MoU) for a nearshore FLNG to be deployed offshore Sabah, Malaysia.
The project, known as ZLNG, is be located at the Sipitang Oil and Gas Industrial Park (SOGIP) and is estimated to cost around MYR8.8 bill.
It is currently in the front-end engineering and design (FEED) stage and is targeted to complete a final investment decision (FID) at the end of this year.
Towards the end of last year, Petronas awarded two FEED contracts to a JGC Corp/Samsung Heavy Industries consortium and to SAIPEM, as part of an international dual FEED design competition for an FLNG project in Sabah.
Under the deal, SOGDC would assisting Petronas in securing all the necessary approvals, permits and/or utilities as the SOGIP developer.
“The floating LNG facility will create multiple spin-offs for the state. It will unlock potential future businesses, such as tank regional distribution and bunkering, and potentially provide return to participating parties and expand the LNG Virtual Pipeline System (VPS) in Sabah,” Joachim Gunsalam, Sabah’s Deputy Chief Minister and Minister of Industrial Development, said.
The LNG plant is planned to be ready for start-up by the end of 2026. Upon completion, it will increase Petronas’ LNG production from FLNGs from 2.7 mill tonnes per annum to 4.7 mill.
Petronas already operates two FLNGs.
