Malaysian energy giant Petronas has pushed forward with its nearshore liquefied natural gas (LNG) project in Sabah, Malaysia, following its awarding of two Front End Engineering Design (FEED) contracts.

The contracts for the project – due to have a minimum capacity of 2m tonnes per annum (MTPA) – were awarded to a JGC Corporation-Samsung Heavy Industries consortium and to SAIPEM Spa as part of a competition expected to take place over the course of ten months. 

A Final Investment Decision (FID) is planned for 2022 and, subject to FID, the winning FID contractor will begin the Engineering, Procurement, Construction and Commissioning (EPCC) phase. 

Commenting on the project, Adnan Zainal Abidin, Executive Vice President, CEO of Gas and New Energy, Petronas, said, “The development of Sabah’s first nearshore LNG plant reflects our technological expertise where we continue to innovate modern solutions to monetise gas resources in an optimised and environmentally friendly manner.” 

Ready to begin operations by the end of 2026, the new plant will be increasing the company LNG production from floating LNG facilities from 2.7 MTPA to 4.7 MTPA.