Petronas: New vessels cuts cost

Save costs, at the expense of cutting out local companies, we see, hmmm? Or were some technical services people due for company sponsored holidays in Korea?

Also, the electical system of the PFLNG cost USD50M alone. The whole PFLNG is at least USD2billion. Compare that to the cost savings in the article.

Dateline 2015-04-23, Daily Express:

Petroliam Nasional Bhd (Petronas), which is building two floating liquefied natural gas (FLNG) facilities, said the new vessels would lower the production cost of smaller gas fields.

“With the Petronas FLNG 1 (PFLNG 1), we are looking at US$500mil (RM1.85bil) cost saving for a marginal gas producing field,” said Petronas vice-president and venture director LNG project (domestic) Datuk Abdullah Karim.

The first such vessel in the world, which is expected to enter production early next year, is designed to operate near an offshore gas field where it will produce, liquefy, store and transfer LNG at sea to bigger ships for exports.

A conventional way to produce LNG requires gas to be pumped through underwater pipelines to an onshore facility and processed.

“We will save on the cost of building a pipeline. For instance, 180km would cost US$400mil to US$500mil, as well as a jetty and a berth onshore that would cost US$100mil to US$150mil more,” he said.

Abdullah said the PFLNG 1 would open new opportunities to better access small and remote offshore gas field in the country.


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