Malaysian oil and gas company Petroliam Nasional Berhad (PETRONAS) has pushed the commissioning of its second floating liquefied natural gas (FLNG) project for a later date as the company works to cut costs in a relentless market.
The PFLNG 2 project, to be located off the coast of Sabah in Malaysia, was originally scheduled for delivery in 2018. However, it has not been disclosed what will be the new date of delivery.
The FLNG is being built by Korean shipbuilder Samsung Heavy Industries as part of a consortium consisting of JGC Corporation, Samsung Heavy Industries Company Limited, JGC (Malaysia) Sdn Bhd and Samsung Heavy Industries (M) Sdn Bhd.
Meanwhile, PETRONAS’ first floating LNG facility (PFLNG 1) at the Daewoo Shipbuilding & Marine Engineering (DSME) shipyard in Okpo, South Korea is nearing conclusion, with 95% of the structure completed in December 2015. Once completed, the PFLNG 1 will be moored at the Kanowit field, offshore Sarawak, and is designed to produce 1.2 mtpa of LNG.
The announcement comes as Petronas wraps up an extremely difficult 2015 with lower revenue and profit after tax (PAT) amidst a depressed oil price environment and net impairment on assets.
PETRONAS recorded a revenue of RM248 billion, a 25 per cent decline compared to the same period in 2014. The company anticipates its financial performance for 2016 to continue to be affected by the prolonged volatility in oil prices.
Speaking at a press conference Monday, PETRONAS’ President and Group CEO, Datuk Wan Zulkiflee Wan Ariffin said that PETRONAS had persevered through the challenging year to remain profitable.
Wan Zulkiflee said that the next two years would continue to be challenging for PETRONAS and that the company’s cash flow from operations are unlikely to be able to cover the remaining CAPEX and its RM16 billion dividend commitments to the government.