Malaysia LNG Sdn. Bhd. let contracts for a big expansion of its Bintulu, Malaysia, liquefied natural gas plant.

M.W. Kellogg Co., Houston, and JGC Corp., Tokyo, along with Sime Engineering Sdn. Bhd. of Malaysia, Kellogg (Malaysia) Sdn. Bhd., and JGC (Malaysia) Sdn. Bhd., will engineer, procure, and build the expansion, estimated to cost $1.6 billion (U.S.).

Kellogg said doubling capacity to 15.8 million metric ton/year of LNG by the addition of three liquefaction trains will make Bintulu the world's largest LNG plant. The first complex, operating since 1983, uses three trains to produce LNG from reserves 70 miles off Sarawak. LNG goes into any one of four storage tanks, each with a capacity of 65,000 cu m.

To serve the expansion, Malaysia LNG will add a fifth 65,000 cu m capacity tank, bringing storage capacity to 325,000 cu m.

From storage, LNG from the current complex moves by tankers to Japan. Product from the expansion will go to Korea, Taiwan, and Japan.

Construction of the complex will start in 1993, with the first train due on stream in 1995. The full expansion is slated for 1996 completion.

Malaysia LNG is a joint venture of state owned Petronas 60%, Royal Dutch/Shell and Mitsubishi 17.5% each, and the Sarawak government 5%.

Copyright 1992 Oil & Gas Journal. All Rights Reserved.

MALAYSIA TO EXPAND BINTULU LNG PLANT

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