World's first FLNG project starts off Malaysia

Malaysia’s Petronas has achieved first gas from its first floating liquefied natural gas (FLNG) facility, PFLNG SATU earlier this week (14 November) from the Kanowit gas field, offshore Sarawak.

Image of the PFLNG SATU, from Petronas.

The introduction of gas from the KAKG-A central processing platform at the field ignited the PFLNG SATU flare tower at the height of 130m, proving the technological aspirations of Petronas to unlock gas reserves in Malaysia’s remote and stranded gas fields, the company said in a statement.

PFLNG SATU made its 2120 nm journey from Okpo, South Korea to the Kanowit gas field on 14 May 2016 for its offshore phase of commissioning, which Petronas anticipates will soon progress towards commercial operations and first cargo. 

The PFLNG SATU, fitted with an external turret for water depths of between 70-200m deep, will extract natural gas via a flexible subsea pipeline for the liquefaction, production, storage and offloading processes of LNG at the offshore gas field.

“We have come a long way with our partners to deliver a game changer in the global LNG business. The shared vision for PFLNG SATU to monetise gas resources uneconomical to develop via conventional means is an achievement all can be proud of,” said Adnan Zainal Abidin, Petronas acting VP LNG assets, development and production said.

PFLNG SATU has been designed to last up to 20 years without dry-docking, and has the flexibility to be redeployed to multiple locations to better access marginal and stranded gas fields of Malaysia.

“PFLNG SATU will introduce a new play type to complement Petronas’ global LNG portfolio and enhance its reputation as a preferred and reliable LNG supplier,” the company said.

The company also posted significant higher profits for Q3 2016 of US$1.4 trillion (RM 6.1 billion), when compared to Q2 2016’s $365 billion (RM 1.6 billion).

Total production volume for the year was 2.3 MMboe/d, a slight increase from 2015.

Petronas said the current oil price environment continues to pose significant challenges to the industry and the outlook remains uncertain.

“While performance in 2016 is affected, Petronas has been responsive with strong operational efficiency and financial discipline,” the company said.

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