Malaysia LNG
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Malaysia LNG Sdn. Bhd. (MLNG) is one of the subsidiary companies of the Malaysian oil and gas giant PETRONAS. Incorporated on June 4, 1978 (first successful delivery in 1983) it currently the largest LNG manufacturing complex (as of 2007.) Besides PETRONAS, Shell, Mitsubishi and the Sarawak Government hold a minority stake.
Situated at the once fishing town called Bintulu, in the Malaysian state of Sarawak, MLNG acquires its gas from 125 kilometres (80 mi) to 225 kilometres (140 mi) offshore of Bintulu from its partners PETRONAS Carigali and Shell. Production is done on 8 trains in which 3 belonged to MLNG Satu (the first joint venture) 3 on MLNG DUA and 2 for the most current MLNG 3.
With almost 30 years of experience in Liquified Natural gas business it is a major player in the East Asian Market. Exports in 2005 were 21.85 mtpa and there is currently a debottlenecking / upgrading project underway to increase LNG production by 1.4 mtpa. The three projects are located on one site, all use APCI liquefaction technology and share common facilities. LNG cargo exports are through Bintulu port ex-ship (for all term Japanese sales) and FOB (for some Korean volumes) on various sized ships. Slightly unusually, 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. Korea (26%) and Taiwan (9%) take the balance. MLNG has a sophisticated LNG sales organisation and sells spot cargoes into the Asia region and, from time to time, into the Atlantic Basin. MLNG prefers to commit its volumes on a long-term basis, has developed excellent relations with its customers, and has shown itself to be a very reliable supplier since it started production in January 1983.
