Malaysia Starts Exporting Liquefied Natural Gas Produced At Floating Flng PlantMar 27th, 2017
According to the monitoring of shipping and other sources, Malaysia will become the first world exporter of liquefied natural gas produced on a floating facility. The developers have spent several billion dollars on this project, and a national company Petronas got the start of Royal Dutch Shell in the race for the right to export gas from a floating plant.
The experts from Thomson Reuters Eikon reported that Petronas Satu Floating LNG (PFLNG Satu), located on the island of Borneo, has already started LNG loading to a special tanker Seri Camellia, the capacity of which is 144,000 cubic metres. Although the company refused to comment, informants reported that the loading began in the last week of March and soon the tanker with gas from PFLNG Satu will be delivered to South Korea. According to Reuters, the estimated cost of the floating platform, which is now in Borneo, is $ 10 billion.
At the moment there are several building and maintenance FLNG projects across the globe. Japanese company Inpex has invested 37 billion dollars in the same floating facility in the framework of the export project Ichthys. Royal Dutch Shell is building the largest LNG ship valued at $ 12 billion. In the experts’ opinion, the big investments in the engineering and construction of such platforms cannot bring the expected profits due to the lack of large orders for FLNG. This is because the industry is undergoing significant changes. The leading exporters of LNG in the global market are the United States and Australia. In addition, LNG overproduction has led to the situation that in Asia prices fell by 70%, which equals 5.50 dollars per million British thermal units (M Btu).
It is indubitable that Petronas owes its success and huge credibility to the Satu project. The company has found itself among the global players offering FLNG. However, the spot prices for LNG tending to the level below$ 5 for M Btu make it unlikely that Petronas will maintain further large deliveries.