Malaysia’s Petronas hands out power plant contract for third FLNG

A unit of Malaysian energy giant Petronas has awarded a contract to compatriot engineering and energy solutions provider Kejuruteraan Asastera (KAB) for a power plant that will serve the nearshore FLNG producer in Sabah.

KAB said in a statement on Monday that its unit KAB Energy Holdings or KABEH won a letter of award for the engineering, procurement, construction and commissioning of the 52 MW power plant and its associated facilities in Sabah.

Regas Terminal, a unit of Petronas Gas, awarded the contract worth 230 million Malaysian Ringgit ($52.2 million) to KAB’s unit.

KAB said the power plant would be located at the Sipitang Oil and Gas Industrial Park and would be the sole source of energy supply to Petronas’ upcoming floating LNG project ZLNG, the company’s third FLNG producer.

The ZLNG plant, slated to be Sabah’s first nearshore natural gas facility, will have a minimum capacity of 2 million tonnes per annum.

KAB claims that the power plant, upon completion, would become the single largest gas engine plant in Malaysia.

The firm expects EPCC works for the power plant to start in the second quarter of 2023 with completion set for the first quarter of 2026.

LNG Prime reported on December 22, citing shipbuilding sources, that South Korea’s Samsung Heavy Industries and Japan’s JGC have won a contract to build the third floating LNG producer for Petronas.

Upon completion, the nearshore LNG plant would increase Petronas’ LNG production from floating LNG facilities from 2.7 mtpa to 4.7 mtpa.

Currently, Petronas operates two floating LNG facilities, namely the 1.2 mtpa PFLNG Satu as well as the 1.5 mtpa PFLNG Dua, both located offshore Sabah.

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