Petronas: Gas supply force majeure impacts MLNG Dua but other plants unaffected

KUALA LUMPUR (Oct 10): Petroliam Nasional Bhd (Petronas) has said its force majeure on gas supply for the production of liquefied natural gas (LNG) at the Petronas LNG Complex in Bintulu, Sarawak affected only the MLNG Dua production facility.

In a statement, Petronas said the other LNG production facilities within the Petronas LNG Complex continue to operate as planned.

This means that the force majeure may impact one-third of the Petronas LNG Complex capacity, back-of-the-envelope calculations showed.

MLNG Dua is one of the three LNG plants within the Petronas LNG Complex, with three liquefaction trains of 3.2 million tonne per annum (mtpa) capacity each.

The complex’s two other plants are MLNG Satu, with three trains of 2.8 mtpa capacity each, and MLNG Tiga, with three trains of 3.8 mtpa capacity each.

With just under 30 mtpa capacity combined, the three plants make the Petronas LNG Complex one of the largest LNG facilities worldwide, supplying key customers in Japan, Korea, China and Taiwan.

In the statement, Petronas said the force majeure followed a pipeline leak “caused by soil movement at the vicinity of KP201, Sabah-Sarawak Gas Pipeline (SSGP) that occurred on Sept 21, 2022”.

“Petronas is mindful that this incident has impacted its delivery commitments to some of its contracted LNG buyers and it is in discussions to identify suitable mitigation efforts.

“Petronas is currently conducting a comprehensive evaluation of the SSGP to ensure the integrity and safety of the pipeline,” it said.

Media reports said that the latest leak occurred near Pa Berunut, Lawas, citing Selangau Member of Parliament Baru Bian.

The 500-kilometre pipeline spanning from Kimanis, Sabah to Bintulu, Sarawak has had several incidents in the past, including an explosion in Marudi in 2020.

https://www.theedgemarkets.com/article/petronas-gas-supply-force-majeure-impacts-mlng-dua-other-plants-unaffected

 

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