SKE: Petronas secures feedgas for MLNG plant

SKE: Petronas secures feedgas for MLNG plant

SapuraKencana unit, SapuraKencana Energy Sarawak signed an agreement to sell gas from its SK310 B15 gas field to energy giant Petronas.

Gas from the B15 field will be delivered to the Petronas-operated Malaysia LNG complex in Bintulu, Sarawak with the first delivery targeted for the fourth quarter of 2017, SKE said in its filing to the stock exchange on Monday.

The B15 gas field was discovered in December 2010 within the SK310 PSC area, offshore East Malaysia. The development of the field will comprise a central processing platform with a 35-km pipeline to be tied into existing infrastructure.

SapuraKencana Energy holds a 30 percent interest stake, and is the operator of the Block SK310 production sharing contract that has been awarded to Petronas in 2008.

Petronas holds 40 percent participating interest in the SK310 PSC while Diamond Energy, a unit of Mitsubishi Corporation, holds the remaining 30 percent interest.

The Malaysia LNG complex in Bintulu, Sarawak currently has the capacity to produce 25.7 million tons of liquefied natural gas per year.

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