A consortium of Japan’s JGC and Samsung Heavy Industries have secured a contract for a nearshore floating liquefied natural gas (FLNG) project in Malaysia.

The engineering, procurement, construction, commissioning (EPCC) contract has been awarded by Malaysian oil and gas company Petroliam Nasional Berhad (Petronas).

Expected to be the world’s first nearshore project of its kind, the planned facility will be the third FLNG plant to be constructed for the Malaysian offshore gas fields.

With a minimum production capacity of two million tonnes of LNG annually, the FLNG is scheduled to be completed in 2027.

JGC will be responsible for the engineering, procurement, and commissioning work for the FLNG topside, the associated onshore facilities, and the management of the overall project.

Samsung Heavy Industries will undertake the FLNG hull EPC work and the modular fabrication of the topside.

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By GlobalData

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.”

Petronas recently selected Baker Hughes to deliver CO₂ compression equipment to its Kasawari offshore carbon capture and sequestration (CCS) project in Sarawak, Malaysia.