KUALA LUMPUR: New York Stock Exchange-listed GE Oil & Gas (GE O&G) said it will supply its gas turbine-driven compressor train and mechanical drive technology to Petroliam Nasional Bhd (Petronas) for the latter’s second floating liquefied natural gas (FLNG) facility that is being developed off East Malaysia.
In a statement yesterday, GE O&G said this latest project marks another major order with Petronas under a global frame agreement for equipment supply between the two companies.
It said it was awarded the contract primarily because of the successful track record of its turbomachinery in supporting offshore LNG production.
“We are excited to move ahead with the development of our second FLNG facility that will boost our LNG production to help meet Asia’s growing energy needs,” said Datuk Abdullah Karim, vice-president and venture director of LNG Projects (Domestic), Upstream Business, Petronas.
As part of its contract, GE O&G will supply four of its PGT25+G4 gas turbine generator systems and two nitrogen trains featuring two LM6000-PF+2BCL907 aeroderivative gas turbines in mechanical-drive mode.
“Commercial operation is expected to begin in the third quarter of 2017, [and] once operational in the first quarter of 2018, the second FLNG facility will produce about 1.5 million tonnes a year (mtpa) of LNG,” said GE O&G.
GE O&G’s equipment will be manufactured at the company’s assembly facilities in Florence and Massa, Italy.
“Following up on the turbomachinery we supplied for Petronas’ first FLNG facility, [which is] one of the first FLNG projects in the world, we are excited our equipment has been selected for their second FLNG as well, illustrating the breadth of LNG production activities we are supporting around the world both onshore and offshore,” said GE O&G vice-president and chief executive officer of Turbomachinery Solutions, Rafael Santana.
Previously, Petronas had selected GE O&G’s turbocompressor equipment to power its first FLNG, which is currently being constructed in South Korea.
This article first appeared in The Edge Financial Daily, on November 14, 2014.