Petronas floating liquefied natural gas unit to be completed by March 2016, is expected to deliver its first LNG cargo in the first quarter of 2016.
According to the Petronas Vice President and Venture Director LNG projects Abdullah Karim, the project is expected to deliver its first cargo in the first quarter of next year and the supplies will be used for domestic consumption, Reuters reports.
Despite the drop in oil prices, Abdullah Karim said that the project remains viable for Petronas.
Although challenging, with the rise of oil prices to $70 a barrel, the Senior Vice President of Petronas’Technology and Engineering unit Colin Wong expects the company to get an internal rate of return in double digits.
Regarding the cost-efficiency of the project in relation to the land-based LNG facilities, Abdullah Karim said that over its lifespan of 20-25 years, the PFLNG1 would save the company about $500 million.
LNG World News Staff; Image: DSME