Petronas Wants Malaysia to be Regional LNG Bunkering Hub

Malaysian oil and gas company Petronas plans to introduce liquefied natural gas (LNG) bunkering operations at the country from the second half of 2019.

“As a major player in the LNG business, PETRONAS is well-positioned to support the strategic intent for Malaysia to become the regional LNG bunkering hub,” it said in the Petronas Activity Outlook 2019-2021 report.

"Efforts are now being put in place towards advocating LNG as the preferred marine fuel of choice. In close collaboration with industry associations like MOSVA, programmes are aligned to encourage migration; to develop necessary infrastructures to support a swift and effective migration of local (currently diesel-fueled) OSV fleet to LNG, as the cleaner option," it said.

The first commercial LNG Bunkering is poised for start-up by second half of 2019 from RGT1 (Sg Udang, Melaka) and RGT2 (Pengerang, Johor), followed by KSB (Kemaman, Terengganu) and ASB (W.P. Labuan).

Dual-fueled LNG-based engines are expected to be the future solution, it said.

Meanwhile, the new LNG Regasification Terminal in Pengerang is a major strategic growth project for PGB, the company said.

It provides fuel requirement for Pengerang Cogeneration Plant (PCP), one of six Associated Facilities as well as the entire Pengerang Integrated Complex (PIC).

The LNG jetty is able to receive carriers up to 260,000 m3 and the two units of LNG Storage tanks with capacity of 200,000 m3 each, it said.