FID reached on 1st facility for LNG exports
KUALA LUMPUR: Petroliam Nasional Bhd (Petronas) has reached a final investment decision (FID) to build its first floating terminal for liquefied natural gas (LNG) exports, said president and chief executive officer Tan Sri Shamsul Azhar Abbas.
The facility in Kanowit, Sarawak, which aims to be the first of its kind in the world when commissioned in 2015, would have a capacity of 1.2 million tonnes.
Its executive vice-president, gas and power business Datuk Anuar Ahmad said on the sidelines of the World Gas Conference (WGC) that the FID for the terminal, which would be 100% owned by Petronas, was reached earlier this year.
The terminal’s capacity, he said, would mostly cater for the domestic market. Plans are also underway for a second terminal in Rotan, Sabah.
Petronas had announced in February last year that it awarded a foreign consortium consisting of French-based Technip SA and South Korean Daewoo Shipbuilding & Marine Engineering Co Ltd the engineering contract to build the terminal.
The terminals were reportedly on the drawing board since 2007.
Meanwhile, the country’s first LNG regasification terminal developed by Petronas’ gas processing arm Petronas Gas Bhd was launched yesterday at WGC by the Prime Minister.
The project had reached its mechanical completion stage, two years after it was announced under the 10th Malaysia Plan, and is slated for commercial operation in August.
“We are also assessing the feasibility of constructing a second LNG regasification terminal to be located in southern Johor to meet the energy needs of the various planned devel- opments there.
“A third terminal in Lahad Datu, Sabah is also being pursued as an integrated gas-to-power development projects slated to be commissioned in 2015,” Shamsul said in his speech ahead of the launch.
Anuar said the Malacca plant will receive its first cargo by mid-July from its Bintulu complex, adding that Petronas had also bought some cargo on short term arrangements with other suppliers.
“There will be few more cargoes after that, and towards the end of August we should be able to push it into the pipeline and serve our commercial customers,” he said.
He added that under the Economic Planning Unit’s plan to raise gas prices to the power sector every six months to reach market parity by 2016, gas would eventually sold at market prices.