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Tan Sri Dato’ Shamsul Azhar Abbas, ceo of Petronas

Petronas cuts steel on first FLNG at DSME

Petronas has cut steel for the hull of its first floating liquefied natural gas (FLNG) facility at the Daewoo Shipbuilding and Marine Engineering (DSME) shipyard in Okpo, South Korea.

This marks a major milestone for the project, and it will now move to the construction phase to meet the commissioning schedule in 2015.

Petronas had signed the engineering, procurement, construction, installation and commissioning (EPCIC) contract for the project with the consortium of Technip and DSME last June. The FLNG facility is to be located in Malaysia's Kanowit gas field, 180km offshore Sarawak, and has the capacity to produce 1.2 mtpa of LNG.

Petronas sees the FLNG project as changing the landscape of the LNG business. "The facility will also play a significant role in efforts to unlock the gas reserves in Malaysia’s remote and stranded fields currently deemed uneconomical to develop and evacuate," the Malaysian state oil and gas firm said.

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