Petronas’ decision to build Malaysia’s first LNG-import terminal will allow it to prepare for an impending shortfall of gas in the peninsular region of the country. With a second terminal already planned and an 18-month gap between completion and the start of the first import contract, the move presents major opportunities for Asian LNG exporters.

Malaysia’s state-owned Petronas has signed a deal to build the country’s first liquefied natural gas (LNG) import terminal, in the south-western state of Malacca. The terminal is designed to meet an impending shortfall of gas in Peninsular Malaysia as demand growth in the densely-populated region outstrips local supply. Petronas’s decision to leave an 18-month gap between the completion of construction and the start of its first import contract will leave room for project delays and will also provide opportunities for LNG exporters.

Putting Its Foot On The Gas

Petronas signed a heads of agreement (HoA) with its subsidiary Petronas Gas to develop a regasification terminal on December 1, according to a report in Malaysia’s The Star Online website. The facility, which will be located near Sungai Udang Port in Malacca, will have a send-out capacity of 3.8mn tonnes per annum (tpa), equivalent to 5.2bn cubic metres (bcm) of gas. Feasibility studies are expected to be completed by end-2010, with the terminal scheduled to come onstream by 2015


News Update; Datamonitor 24 March 2011

Petronas is building LNG regasification facilities with a capacity of 3.8 million tonnes per annum in Mukim Sungai Udang, Melaka, which will import LNG, store it in a Floating Storage Unit (FSU) and vaporize it at a regasification unit. Hamworthy, a provider of systems and services to the marine and oil and gas industries, has received a new contract to supply the plant for an import facility under construction for Petronas Gas Berhad, in Malaysia, in a deal worth in excess of $30 million. Mr Lunde said the Hamworthy contract included; complete set of the regas unit, sea water filters and training, which includes use of a simulator at Hamworthy’s premises in Norway. “Hamworthy will provide start-up, commissioning and two years operation, spares, inspection and testing, commissioning assistance at the yard and performance testing,” he said.

Tore Lunde, Managing Director of Hamworthy Oil & Gas Systems, said: “With gas being fed direct into the peninsula’s gas distribution network, this project represents another example of the way offshore regasification is increasingly becoming a critical part of the energy supply chain in Asia. “In principle, the Hamworthy regasification installation will feature similar technology as that supplied in the breakthrough shipboard equipment delivered to Golar Freeze, Golar Winter and the forthcoming Golar Khannur,” said Mr Lunde. “However, the latest regasification module will be placed offshore within a fixed jetty, demonstrating the flexibility of our design.”

Formally contracted by Perunding Ranhill Worley Muhibbah Consortium, Hamworthy will deliver the system in January 2012, anticipating overall project commissioning in April 2012. The Jetty Regas Unit (JRU) will be constructed within Sungai Udang Harbour, 3km away from shore. It will be designed for two permanently moored FSUs (130,000m3 capacity each) and the berthing of an LNG carrier (ranging from 130,000m3 to Q-flex 220,000m3 in capacity).