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Air Products wins Petronas FLNG contract

LNG Industry,

Petronas FLNG 2

Air Products has signed an agreement with JGC Corporation to provide its LNG technology, equipment and process license for Petronas’ second floating LNG project (PFLNG 2) offshore Malaysia.

Air Products’ equipment and technology will be vital in the production of 1.5 million tpa of LNG, which is due to come onstream in 2018. The company’s LNG technology has now been selected for all three offshore FLNG projects announced and in construction around the world to date.


Air Products’ account manager for LNG, Bill Kennington, commented: “In our LNG history as a company we have always tried to stay ahead of trends in the market and we are pleased that we have been selected for Petronas’ second FLNG project, as well as the other two global offshore LNG projects thus far that have been announced.

The PFLNG 2 project, much like Petronas’ first floating LNG (PFLNG 1) project, is an important one in the effort to monetise significant offshore natural gas reserves that would otherwise be unreachable. We are pleased our technology was again selected as the solution to this effort.”

Petronas’ Datuk Abdullah Karim, VP of LNG Projects - Domestic, added: “In a project of this complexity, I trust that we have the best expertise from around the world to think of innovative solutions and game changing ideas to harness the best of engineering, design, and manufacturing equipment to ensure safety, quality, as well as a technically and commercially viable project.”

AP-NTM LNG Process

PFLNG 2, which will be drawing natural gas from the Rotan Field in the South China Sea, offshore Sabah, Malaysia, will use Air Products’ AP-NTM LNG Process and Equipment. Air Products will manufacture this equipment including coil wound heat exchangers and compressor-expanders at facilities in the US, and the economiser cold boxes in Tanjung Langsat, Malaysia.

The AP-NTM LNG process is an efficient nitrogen recycle LNG process, which is ideally suited for small scale FLNG applications. It is the same technology selected for the Petronas PFLNG 1 Project, currently under construction in South Korea. The use of the AP-NTM LNG Process and Equipment for FLNG builds on the successful implementation of the nitrogen recycle section of Air Products’ AP-X® LNG Process and Equipment, which have been operating reliably for nearly five years in Qatar. The AP-NTM LNG Process and Equipment can be configured in an all-nitrogen recycle process for a single train at a nominal 1.5 million tpa, or it can be boosted in capacity with the addition of pre-cooling.

Offshore liquefaction

Air Products has a long relationship with Petronas. The company has also supplied LNG technology and equipment to Petronas’ Bintulu, Malaysia LNG facility for multiple LNG trains, with the first train becoming operational in 1983.

“With two FLNG projects underway, Petronas is showing itself to be a leader in what is a state-of-the-art method for offshore natural gas liquefaction. We have an existing working relationship with Petronas dating back over three decades and are pleased to be continually building our ties with Petronas in support of these very exciting projects and market developments,” commented Air Products’ Jim Solomon, director of LNG.

Adapted from press release by Katie Woodward

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