Malaysian oil and gas company Petronas would build a third Floating LNG unit if there’s a demand, Malaysian news agency Bernama reported Monday, citing the company’s executives.
Petronas last week in South Korea held a naming ceremony for its second floating liquefaction unit – the PFLNG DUA. The FLNG – which had been delayed after oil price drop in 2014-2015 – is designed to extract gas from deepwater gas reservoirs in depths up to 1,500 meters and will be Petronas’ second FLNG unit in operation after the company brought online the PFLNG SATU in 2017.
Once officially launched next year, the PFLNG DUA will make Petronas the only company in the world operating two FLNG units.
According to the Bernama report, Petronas wouldn’t object to building the third such unit if the conditions are right.
“If there is a reservoir with a sizeable amount of reserves and with the right gas composition that it is economically viable, it opens up a case for another floater.[…] If the situation warrants it, we will take it. Game on,” said Gas and New Energy Business executive vice president and chief executive officer Adnan Zainal Abidin, as reported by Bernama.
Per the report, while the first two FLNGs are Malaysia-bound, the third one might be deployed elsewhere, with the company looking at options such as Mexico, Brazil, and West Africa. The third FLNG by Petronas would also be cheaper as the company has now amassed substantial experience with building the first two units.
There are currently only four floating liquefaction units operational in the world: Shell’s giant Prelude FLNG in Australia, Exmar’s Tango in Argentina, Petronas’ Satu in Malaysia, and Hili Episeyo FLNG in Cameroon.