Malaysia’s second floating LNG (FLNG) vessel, PFLNG Dua, will enter service in Q1 2020, Petronas president and group chief executive Wan Zulkiflee said today.
Mr Zulkiflee shared the news in a session on new LNG markets at the LNG2019 conference in Shanghai, in which he discussed how Petronas attempts to meet the needs of the southeast Asian LNG market.
Constructed at Samsung’s shipyard in Geoje Island, South Korea, PFLNG Dua is destined for the deepwater Rotan gas field 130 km off Sabah in the South China Sea. It is designed to operate for 20 years without the need to be drydocked, and will have a production capacity of 1.5M tonnes of LNG per year.
Petronas’ first FLNG vessel, PFLNG Satu, entered service in 2017 and recently moved 450 km from Kanowit to its second site in the Kebabangan field, Mr Zulkiflee said.
Responding to a question about the future of FLNG, he said “This is a very viable development concept that will be looked at more and more seriously,” noting it is well suited to situations where onshore liquefaction infrastructure is not an option.
Mr Zulkiflee noted that in Petronas’ case it is fortunate as it is both owner and developer, so FLNGs allow the company to operate a strategy of mopping up resources that would be hard to monetise otherwise, for example stranded assets without access to infrastructure, or small reserves.
Characterised by fragmented demand centres with small appetites due to the large number of islands, the southeast Asian market offers unique challenges, he added. Petronas is investigating a number of avenues to meet these challenges, including breakbulking and the so-called 'virtual pipeline' method of using ISO tanks to transport small quantities of LNG.