ABB said it has won a contract worth more than $50 million to supply the electrical system for one of the world’s first commercial FLNG facilities, and the second to be owned by Malaysian oil and gas company Petronas.
It will be called PFLNG2 and the contract was awarded in the fourth quarter of 2014 by Japanese engineering contractor JGC Corporation. JGC is part of a consortium that is building the facility for Petronas, along with Samsung Heavy Industries of Korea.
Under the terms of the contract, ABB will support the optimization of the facility’s electrical side by designing, manufacturing and supplying transformers, switchboards, motor control centers and power management system. In addition, ABB will also manage the installation of the equipment and ensure the electrical supply is integrated with systems it is powering, the company said in a statement.
FLNGs have long been considered an attractive concept, and a recent report by Douglas-Westwood estimated the market to be worth $64 billion between now and 2020. The agility of FLNGs allows oil and gas companies to exploit fields that would otherwise be uneconomical, and their environmental impact is minimal compared with conventional production platforms and pipelines.
The PFLNG2 will be built at Samsung Heavy Industries’ yard in Geoje, Korea in 2015. When operations start in 2018, the facility will be moored over the deepwater Rotan gas field located off the Malaysian coast.
It is designed to produce 1.5 million tons of LNG annually for at least 20 years before it requires a dry dock.