05-06-2012

Malaysia’s first LNG re-gasification terminal reaches completion

To mark this important industry milestone, Prime Minister Dato’ Sri Mohd Najib Tun Razak and Melaka Chief Minister Datuk Seri Mohd Ali Rustam today officially launched the facility in conjunction with the World Gas Conference 2012 taking place in Kuala Lumpur.

PGB is currently progressing ahead with the preparation to commission the project for commercial operation scheduled for August.

PETRONAS’ plan for the development of the project, also referred to as Re-gasification Terminal (RGT) Sungai Udang, was officially announced by the Prime Minister on 10 June 2010 when he presented the 10th Malaysia Plan in Parliament. The project was then estimated to cost RM3 billion.

Following the announcement, the task of developing the RGT was assigned by PETRONAS to PGB, which implemented the project on a fast-track basis to meet its completion deadline in record time and with a significantly lower cost than its original RM3 billion budget.

Situated three kilometres offshore Sungai Udang, Melaka, the RGT is considered an engineering feat by the industry. Developed based on a revolutionary design, it comprises the world’s first-of-its-kind re-gasification unit on an island jetty (JRU), two floating storage units (FSU) and a three-km sub-sea pipeline connecting to a new 30-km onshore pipeline that linksto PGB’s existing Peninsular Gas Utilisation (PGU) pipeline network.

The FSU concept has enabled the project team to save invaluable two years, compared to building land-based re-gasification and storage facilities. The two FSUs, formerly Tenaga-class LNG tankers owned by PETRONAS’ shipping arm MISC Bhd, will be permanently berthed at the JRU.

The conversions of the tankers into FSUs were carried out at Malaysia Marine and Heavy Engineering Holdings Bhd’s shipyard in Pasir Gudang, Johor and Keppel Shipyard, Singapore. The FSUs have been designed to be berthed for at least 20 years without the need for dry docking.

The JRU, which is the core of the RGT, is designed to receive LNG, re-gasify it and deliver natural gas via the sub-sea pipeline to the PGU pipeline. The JRU has a capacity to receive, store and vapourise up to 3.8 million tonnes per annum (530 million standard cubic feet per day) of LNG, which will be imported from various supply sources globally.

The project was developed in anticipation of future increase in gas demand in the face of depleting indigenous gas reserves, as part of PETRONAS’ efforts to ensure sufficient and secure natural gas supply for Malaysia.

Its implementation has also enhanced the capability of the local players involved in the project, exposing them to new technologies and expertise that would be beneficial to their growth and the development of Malaysia’s oil and gas industry.