Malaysia gas and LNG H2 2016 summary: Managing piped gas vs LNG interplay

The MLNG Train 9 project, located at the MLNG complex in Bintulu, came onstream on 27 September 2016. The 3.6 mmtpa train increased Bintulu's total liquefaction capacity to 29 mmtpa. The new train receives gas supply from the NC3 field within the SK 316 block. Future feedgas will also come from the high-CO2 Kasawari field within SK 316. Subsequently in November 2016, the 1.2 mmtpa PETRONAS FLNG 1 started operating, with feedgas coming from the Kanowit field within the Kumang cluster. The first LNG cargo is expected to be delivered in Q1 2017. The new facility is the world's first FLNG project to be operational. PETRONAS will need to manage its long position, through securing contract roll-over and new LNG sales agreement, and by putting some volumes to the Peninsular Malaysia market whenever possible.