Air Liquide Engineering & Construction has entered into a partnership with Samsung Engineering for the Front-End Engineering and Design (FEED) study of a methanol production plant in Malaysia.

Owned by state-owned oil and gas firm Sarawak Petchem, the methanol plant will come into operation in 2023.

This new facility will produce 5,000 tonnes of methanol per day based on Air Liquide Engineering & Construction proprietary process technology Lurgi MegaMethanolTM, which converts natural gas into methanol.

Leveraging their complementary strengths and know-how, Air Liquide Engineering & Construction and Samsung will carry out the FEED study. Air Liquide Engineering & Construction will be the technology licensor while Samsung Engineering will design the project’s utility systems and balance of plant.

FEED is a key step that will help decision makers get the necessary information. The FEED will be exclusively converted to Licensor, Engineering, Procurement, Construction and Commissioning (LEPCC) contract at the end of the year subject to final decision.

David Maloney, E&C Chairman & CEO, said, “We are proud to have established this partnership which further enhances our position as the leading technology provider for Methanol plants.”

“Our Lurgi MegaMethanol technology for world-scale methanol plants with a production capacity of up to two million metric tons of methanol a year, enables reliable production with cost-optimised energy efficiency and lower environmental impact.”

“This renowned expertise and strong presence in Malaysia combined with Samsung Engineering strong track-record in South-East Asia as Engineering Procurement Construction (EPC) and Project Management (PM) Company, have been key to gain the trust of Sarawak Petchem.”