Petronas taps JGC and SHI for first nearshore floating LNG plant

A consortium of JGC Corporation and Samsung Heavy Industries (SHI) has secured an engineering, procurement, construction and commissioning (EPCC) contract with Petronas for the first nearshore floating LNG facility project in Malaysia.

Floating LNG Satu Dua; Illustration only. Courtesy of Petronas
Floating LNG Satu Dua; Illustration only. Courtesy of Petronas

The planned facility is set to become the first nearshore floating LNG facility in the world. It has a minimum production capacity of 2 million tonnes of LNG per annum and is scheduled for completion in 2027.

At the same time, it is the third floating LNG plant to be constructed for offshore gas fields in Malaysia.

Under the newly secured contract, JGC’s main responsibilities will cover the engineering, procurement and commissioning work for the floating LNG topside, the associated onshore facilities, as well as the management of the overall project.

As for the consortium partner, SHI will be responsible for the floating LNG hull EPC work and the modular fabrication of the topside.

The EPCC award follows two front-end engineering design (FEED) contracts from 2021.

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JGC Holdings Corporation Representative Director, President and COO Tadashi Ishizuka said: “We believe that our consortium secured the order for the Petronas FLNG facility project on the basis of JGC’s world-leading project management capabilities and the company’s advanced and proven technologies in LNG plants, accounting for about 30% of LNG plants worldwide, as well as SHI’s world-class shipbuilding capabilities in this field. JGC’s strong leadership backed by excellent project management know-how has been demonstrated during the front-end engineering design (FEED) stage.”

Since the 1980s, JGC Group has executed EPC projects for Petronas for all nine trains of the LNG plants at the Petronas LNG Complex in Bintulu, Sarawak, which has an annual production capacity of approximately 29 million tons per annum.

In 2021, the company completed Petronas’ second floating LNG facility, PFLNG Dua. It is known as the world’s first deep-water floating LNG facility currently in production.

The Japanese company’s portfolio also includes two other newly built EPC floating LNG projects out of the total of three in operation around the world. JGC is currently performing the FEED for a floating LNG project in Nigeria.

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