Malaysia LNG
Encyclopedia
Malaysia LNG Sdn. Bhd. (MLNG) is a liquefied natural gas
Liquefied natural gas
Liquefied natural gas or LNG is natural gas that has been converted temporarily to liquid form for ease of storage or transport....

 manufacturer in Malaysia. In 2007, it was the largest LNG manufacturing complex.

History

Malaysia LNG was incorporated on 4 June 1978 and the first liquefied natural gas (LNG) was delivered in 1983.

Plant description

The LNG plant is located in Bintulu
Bintulu
Bintulu is a coastal town, and the capital of Bintulu District in the Bintulu Division of Sarawak, Malaysia. It is about 650 kilometers from Kuching and about 215 kilometers from either Sibu or Miri....

, in the Malaysian state of Sarawak
Sarawak
Sarawak is one of two Malaysian states on the island of Borneo. Known as Bumi Kenyalang , Sarawak is situated on the north-west of the island. It is the largest state in Malaysia followed by Sabah, the second largest state located to the North- East.The administrative capital is Kuching, which...

. It consists of 8 LNG train
LNG train
An LNG train is the term used to describe the liquefaction and purification facilities in a liquefied natural gas plant.In order to make it practical and commercially viable to transport natural gas from one country to another, its volume has to be greatly reduced...

s of which three belong to MLNG Satu (the first joint venture), three to MLNG DUA and two to MLNG 3. All three projects are located on one site, all use liquefaction technology developed by Air Products & Chemicals Int. (APCI) and share common facilities. In 2005, the total installed capacity was 21.85 million ton
Tonne
The tonne, known as the metric ton in the US , often put pleonastically as "metric tonne" to avoid confusion with ton, is a metric system unit of mass equal to 1000 kilograms. The tonne is not an International System of Units unit, but is accepted for use with the SI...

 per annum (mtpa) of LNG and there was an upgrading project to increase the capacity by 1.4 mtpa.

The LNG plant acquires its natural gas from 125 kilometres (77.7 mi) to 225 kilometres (139.8 mi) offshore of Bintulu
Bintulu
Bintulu is a coastal town, and the capital of Bintulu District in the Bintulu Division of Sarawak, Malaysia. It is about 650 kilometers from Kuching and about 215 kilometers from either Sibu or Miri....

 from its partners Petronas Carigali
Petronas
PETRONAS, short for Petroliam Nasional Berhad, is a Malaysian oil and gas company that was founded on August 17, 1974. Wholly owned by the Government of Malaysia, the corporation is vested with the entire oil and gas resources in Malaysia and is entrusted with the responsibility of developing and...

 and Royal Dutch Shell
Royal Dutch Shell
Royal Dutch Shell plc , commonly known as Shell, is a global oil and gas company headquartered in The Hague, Netherlands and with its registered office in London, United Kingdom. It is the fifth-largest company in the world according to a composite measure by Forbes magazine and one of the six...

.

Markets

In 2005, Malaysia LNG exported 21.85 million ton
Tonne
The tonne, known as the metric ton in the US , often put pleonastically as "metric tonne" to avoid confusion with ton, is a metric system unit of mass equal to 1000 kilograms. The tonne is not an International System of Units unit, but is accepted for use with the SI...

 of LNG. LNG is exported through Bintulu port ex-ship (for all term Japanese sales) and FOB
FOB (shipping)
FOB is an initialism which pertains to the shipping of goods. Depending on specific usage, it may stand for Free On Board or Freight On Board. FOB specifies which party pays for which shipment and loading costs, and/or where responsibility for the goods is transferred...

 (for some Korean volumes) on various sized ships. Malaysia Dua has agreed a sale ex-ship to Sendai City Gas and Saibu Gas using small ships. These vessels of 18,928 cu.m. can cause some operational problems as they are relatively slow in loading and occupy one of the berths at Bintulu that is also used for larger ships.

MLNG Japan buys 65% of Malaysian LNG, and this represented 22% of Japan's LNG requirements in 2005. Other importers are Korea (26%) and Taiwan (9%). In addition to the export on a long-term basis, MLNG also sells LNG on the spot market to the Asia region and the Atlantic Basin.

Ownership

Malaysia LNG is a subsidiary of the Malaysian national oil and gas company Petronas. Besides Petronas, Royal Dutch Shell, Mitsubishi
Mitsubishi
The Mitsubishi Group , Mitsubishi Group of Companies, or Mitsubishi Companies is a Japanese multinational conglomerate company that consists of a range of autonomous businesses which share the Mitsubishi brand, trademark and legacy...

and the Sarawak Government hold a minority stake.
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