Petronas International Corporation Ltd (PICL) has signed an agreement with the UK’s MISC Bhd and Mustang Engineering Ltd to form a joint-venture company for floating LNG engineering services worldwide.

The agreement will see PICL, a wholly owned subsidiary of Malaysia oil and gas company Petronas, hold 60% interest in the joint venture. MISC will hold 30% and Mustang Engineering will hold the remaining 10%.

The agreement firms up earlier indications by the three parties late last year to jointly offer conceptual designs, develop project execution plans and facilitate advancement of technologies associated with natural gas liquefaction in offshore environment - commonly referred to as floating LNG in the industry.

Initially, the new joint-venture will focus on accomplishing a front end engineering design for a project in Malaysia. The project has already progressed to achieve first gas production from a floating LNG facility in late 2013.

Prospects for projects outside Malaysia are currently being assessed, but the joint-venture company aspires to be a one-stop centre in delivering cost-effective engineering solutions to develop and monetize remote offshore gas reserves, create high-value intellectual properties and offer best practices in floating LNG production storage and offloading operations.

Another key objective of the company is to facilitate capability development and nurture local experts in floating LNG technology, through structured resource capability, competencies and research & development programmes.

Petronas is already recognised as a global integrated major in the LNG industry - the partnership with MISC and Mustang Engineering is in line with its aspiration to further grow its leadership position in the global LNG market.