Malaysian LNG plant plans major expansion

Feb. 21, 2000
Malaysia LNG Tiga Sdn. Bhd., a subsidiary of Malaysian state oil firm Petronas, awarded a $1.5 billion turnkey contract for a major expansion of its LNG complex in Bintulu, Sarawak, to a consortium headed by Kellogg Brown & Root (KBR).

Malaysia LNG Tiga Sdn. Bhd., a subsidiary of Malaysian state oil firm Petronas, awarded a $1.5 billion turnkey contract for a major expansion of its LNG complex in Bintulu, Sarawak, to a consortium headed by Kellogg Brown & Root (KBR).

The project will make the facility the largest of its kind in the world, says KBR.

Malaysia LNG Tiga is a joint venture of Petronas, Shell Gas BV, Nippon Oil LNG (Netherlands) BV, Occidental LNG (Malaysia) Ltd., and Sarawak state. The construction consortium includes Malaysian subsidiaries of KBR and JGC Corp. and Sime Engineering Sdn. Bhd. of Malaysia.

The job calls for design, procurement, construction, and commissioning of two LNG trains and offsite facilities, which will be added to the existing six-train complex.

Each train will have capacity of 3.8 million tonnes/year, boosting total capacity of the MLNG Tiga plant to 23 million tonnes/year.

Preparation work on a 130-acre site has begun, with construction slated to start in first quarter 2001. The first new train is scheduled for completion in fourth quarter 2002, and the second in third quarter 2003.

The scope of work includes construction of a 120,000 cu m LNG storage tank, as well as export facilities. The contract also requires the consortium to use at least 30% Malaysian resources and products.

This is the second major expansion of the original MLNG complex. The three-train MLNG Dua addition was completed in 1995 by a consortium headed by JGC Corp. and KBR forerunner M.W. Kellogg Co.

Each phase of the LNG complex has incorporated state-of-the-art technology, including air-cooling throughout the facilities and a high-efficiency design that maximizes utilization of large gas turbines, says KBR.

Natural gas from Helang and Jintan fields, among others about 100 km off Bintulu, will provide feedstock for the new trains. A pipeline is being constructed by Petronas Carigali Sdn. Bhd. and Petronas production-sharing contractors.

Output from the new plant will be shipped to customers in tankers owned by Petronas subsidiary Malaysia International Shipping Corp. Bhd. Last July, Petronas signed a confirmation of intent (COI) for the supply of LNG to Enron Corp. subsidiary Metropolis Gas Co. Pte. Ltd. of India (OGJ, Oct. 4, 1999, p. 25).

MLNG Tiga also signed a COI in September 1997 to supply 500,000 tonnes/year of LNG to Japan Petroleum Co. Ltd. for 20 years. Shipment is to begin in August 2001.

Tokyo Gas Co. Ltd. is also reported to be considering buying more LNG from MLNG Tiga starting in about 2003.

KBR and JGC also were awarded a contract earlier this year to engineer and manage a revamp of the original MLNG plant and the MLNG Dua expansion, along with rejuvenation of the MLNG plant to extend its operational life span by about 20 years. Revamping the plants will provide additional flexibility in feed gas composition. That project is expected to take up to 6 years to complete.