Petronas in Game for a Third FLNG Unit

December 2, 2019

Malaysian oil and gas company Petroliam Nasional Berhad (Petronas) would build a third floating liquefied natural gas (FLNG)unit if there’s a demand.

Petronas is the only company to own and operate two FLNGs, namely PFLNG Satu and PFLNG Dua.

Bernama reported, quoting the gas and new energy business executive vice-president and chief executive officer Adnan Zainal Abidin, that if there is a reservoir with a sizeable amount of reserves and with the right gas composition that it is economically viable, it opens up a case for another floater.

According to the Bernama report, while the first two FLNGs are Malaysia-bound, the third one might be deployed elsewhere, with the company looking at options such as Mexico, Brazil, and West Africa.

“The FLNG vessel can also be built near shore (to extract LNG from an onshore reservoir) especially in politically sensitive countries. In case there is a need to move out, you can have the plant moved away, ” he said in the report.
 
The third FLNG by Petronas would also be cheaper as the company has now amassed substantial experience with building the first two units.

He reminded that his company has over 40 years of experience in LNG business and was involved in the FLNG designing, construction and operations.

"Whenever we find gas we have the option to monetise it. So, this gives us a new play to remain relevant in the LNG market,” he said.

More importantly, the environmental footprint of an FLNG vessel is much lesser as compared with onshore facilities.

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