Petronas declares force majeure at MLNG Dua

Malaysian-state Petronas last week declared force majeure on gas supply to its 9.6-million tonne/year (tpy) MLNG Dua plant due to a pipeline leak caused by Sept. 21, 2022, soil movement near kilometer post KP201 of the 7.7-billion cu m/year Sabah-Sarawak Gas Pipeline (SSGP). MLNG Dua is part of the eight-train, 25.7-million tpy Petronas LNG Complex (PLC) in Bintulu, Sarawak.

Gas fields in the Central Luconia area, offshore Bintulu, supply PLC. Petronas noted that the force majeure only affected supply to MLNG Dua and that the other PLC plants—Malaysia LNG and MLNG Tiga—continue normal operations.

Petronas is in discussions with MLNG Dua contract customers regarding suitable mitigation of any missed deliveries. It also reports conducting a comprehensive evaluation of SSGP.

Sabah Energy Corp. Sdn Bhd (SEC) and Petronas, meanwhile, agreed on terms for the supply of 120 MMscfd of natural gas to SEC and the sale of seven onshore gas pipelines in Sabah, Malaysia, by Petronas Gas Bhd and Petronas Carigali Sdn Bhd to SEC. Also included in the deal were the sale to SEC of gas supply agreements between Petronas and five independent power producers in Sabah.

The State Government of Sabah said SEC’s purchase of the Petronas contracts made it the largest domestic supplier and transporter of natural gas in Sabah, moving more than 250 MMscfd.