Regional LNG: Petronas starts construction of nearshore FLNG facility

By Romel S. Gurky

Malaysian national oil company Petroliam Nasional Bhd (PETRONAS) has officially commenced the construction of its groundbreaking nearshore floating liquefied natural gas (FLNG) facility.

A steel cutting ceremony for the nearshore FLNG facility was held at the Samsung Heavy Industries (SHI) Shipyard in Geoje Island, South Korea. This event marks the beginning of the construction phase of the megaproject, which will become Malaysia’s first nearshore FLNG facility once in operation, the Company said in a press statement released on Monday.

Read also : Regional LNG: Petronas becomes world's first to Produce LNG from two floating facilities

Upon completion, the nearshore FLNG facility will be moored at the Sipitang Oil and Gas Industrial Park (SOGIP) and is expected to attract new investments to the area.

This third FLNG facility by PETRONAS is designed to produce up to 2.0 million tonnes per annum (MTPA) of LNG and is targeted to commence commercial operations by the second half of 2027.

Editing by Alexander Ginting