Malaysia's state-owned oil company Petronas is aiming to bring online the world’s first floating LNG facility, ahead of Ango-Dutch giant Shell, after its chief executive publicly sanctioned the project on Monday.
The 1 million tonne-per-annum FLNG vessel, i.e. LNG-FPSO, will be used to develop the Kanowit discovery off Sarawak, with France’s Technip and South Korea’s Daewoo Shipbuilding & Marine Engineering already awarded a $2 billion contract to build the facility.
The project is set for start-up in 2015, while Shell’s giant Prelude LNG floater that was approved last year is not set to come online until two years later.
Publicly launching the project, chief executive Shamsul Azhar Abbas told a gas industry gathering in Kuala Lumpur that the FLNG facility would enable Petronas to drill up and ship gas from fields that were either too small or too remote to be profitable previously, Reuters reported.
Meanwhile, Petronas has kicked off a separate tender for a second FLNG unit with annual handling capacity for 1.5 million tonnes of output to develop the Rotan and Biris discoveries operated by Murphy Oil off Sarawak, with commercial bids expected soon.
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