PTTEP lets contract for Malaysian gas plant, carbon capture project
PTT Exploration and Production Public Co. Ltd. (PTTEP), through subsidiary PTTEP HK Offshore Ltd. (PTTEP HKO), has let a contract to Technip Energies to deliver front-end engineering design (FEED) for an onshore gas plant (OGP) to process sour production from Lang Lebah field in the Sarawak SK 410B project, about 90 km offshore Malaysia.
Technip Energies’ scope of work on the FEED contract covers design of the Lang Lebah OGP 2, including integrated flow assurance of a native carbon dioxide (CO2) capture, compression, and transportation system that will connect via pipeline back to the offshore wellhead platform for reinjection, the service provider said on Oct. 6.
Following treatment at the Lang Lebah OGP 2, offshore gas produced from Lang Lebah field will be delivered to the Malaysia LNG complex, according to Technip Energies.
To be sited within the Petchem Industrial Park in Tanjung Kidurong, Bintulu, Sarawak, the Lang Lebah OGP 2 is a key project of the Sarawak Integrated Sour Gas Evacuation System (SISGES), a joint development of Sarawak State Government and Petronas, Sarawak Shell Bhd., and PTTEP HKO to spur increased development of untapped sour gas resources off the coast of Sarawak (OGJ Online, June 24, 2022).
The contract award for the OGP follows PTTEP HKO’s mid-January 2021 completion of the Lang Lehah-2 appraisal well that, showing a flow rate of 50 MMcfd of gas, accelerated the operator’s development plan for the project (OGJ Online, Feb. 11, 2021).
At the end of second-quarter 2022, PTTEP said Lang Lebah field—the company’s largest gas discovery ever—was undergoing a development study to reflect larger anticipated gas volumes, including a potential increase of the OGP’s processing capacity as well as ways to manage higher CO2 content to meet greenhouse gas (GHG) emissions targets, according to the operators quarterly earnings report.
Additional details of the carbon capture and storage system planned for Lang Lebah OGP 2 have yet to be revealed.
In its latest presentations to investors in August-September 2022, PTTEP said it expects to take final investment decision (FID) on the SK 410B project in 2023.
Operator PTTEP HKO holds 42.5% interest in SK 410B alongside partners KUFPEC Malaysia (SK-410B) Ltd. (42.5%) and Petronas Carigali Sdn. Bhd. (15%).
Robert Brelsford | Downstream Editor
Robert Brelsford joined Oil & Gas Journal in October 2013 as downstream technology editor after 8 years as a crude oil price and news reporter on spot crude transactions at the US Gulf Coast, West Coast, Canadian, and Latin American markets. He holds a BA (2000) in English from Rice University and an MS (2003) in education and social policy from Northwestern University.
