Malaysia’s state-owned energy company Petronas has started the construction of its nearshore floating liquefied natural gas (FLNG) unit, set to become Malaysia’s first such facility once in operation.

Petronas Starts Construction of Malaysia's First Nearshore 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 third FLNG facility by Petronas is designed to produce up to 2.0 million tonnes per annum (MTPA) of LNG and is targeted to start commercial operations by the second half of 2027.

Focusing on sustainability and innovation, the upcoming nearshore FLNG facility incorporates technologies such as energy-efficient power generation systems and aero-derivative gas turbines to reduce its carbon footprint.

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.

 “Together with our partners in Sabah, we look forward to unlocking Sabah’s gas reserves in an optimized and environmentally sustainable manner, aligned with our efforts to provide energy security and position Malaysia as a key global hub for lower-carbon energy.

“The nearshore FLNG facility is our latest advancement in Floating LNG technology and the culmination of expertise that we have gained from PFLNG Satu and PFLNG Dua,” said Adnan Zainal Abidin, Petronas’ Chief Operating Officer and Executive Vice President & Chief Executive Officer of Gas Business.