PRIME MINISTER OPENS PETRONAS LIQUEFIED NATURAL GAS COMPLEX IN BINTULU

The Prime Minister of Malaysia Dato Seri Dr Mahathir Mohamad today officially opened the PETRONAS Liquefied Natural Gas (LNG) Complex in Bintulu, Sarawak. The opening ceremony of the complex was also attended by several Federal Government Ministers, the Chief Minister of Sarawak Datuk Patinggi Tan Sri Abdul Taib Mahmud and other State officials, PETRONAS Chairman Tan Sri Dato’ Seri Azizan Zainul Abidin, PETRONAS President & Chief Executive Officer Tan Sri Dato’ Mohd Hassan Marican and senior officials of PETRONAS’ joint-venture partners.The Complex, comprising three gas liquefaction plants and other related facilities, has been conceptualised and developed over the past 20 years by PETRONAS — with the support from its joint venture partners — as an integrated world-class LNG production complex. With a total of eight production trains and a combined production capacity of about 23 million tonnes per annum (MTPA), the Complex is set to become the world’s largest LNG production facility at a single site when the third plant’s second production line comes onstream in October.

The development of the Complex was undertaken to monetise and add value to the gas reserves discovered in Central Luconia offshore Sarawak. To date, a total of RM37.5 billion has been invested in the upstream and downstream portions of the project as well in related LNG transportation and supporting facilities. Of this total, about RM25 billion came in the form of foreign direct investment.

Output from the plants has been contracted to buyers from Japan, Taiwan and Korea — mainly gas and utility companies — on long-term supply contracts. The first LNG plant, owned and operated by Malaysia LNG Sdn Bhd (MLNG), has three production trains and can produce up to 8.1 MTPA of LNG. The second plant, under Malaysia LNG Dua Sdn Bhd, also has three production trains and has the capacity to produce 7.8 MTPA of LNG. The third plant, under Malaysia LNG Tiga Sdn Bhd, has two production trains with a combined capacity of 6.8 MTPA. The first train commenced operation in March 2003, while the second train is expected to come on stream in October.

Since the project came on stream in 1983 to March of this year, more than 3,600 cargoes have been delivered to customers from the MLNG and MLNG Dua plants, earning more than US$36 billion in revenue. The development of the Complex and the integrated LNG chain has not only made PETRONAS a reliable global LNG supplier but has turned Malaysia into one of the world’s largest exporter of LNG. The development of the industry has also generated substantial spin-off benefits to Malaysia and Malaysians. These include the transfer of skills and technology, the development of human capital and many other socio-economic benefits.

Issued by
Media Relations & Information Department

May 8, 2003OffshoreMan

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