Malaysian national energy giant Petronas has lifted its force majeure on the supply of MLNG Dua natural gas. MLNG Dua is one of the four liquefaction projects of the Malaysian National Petroleum Corporation’s liquefied natural gas complex located in Bintulu, Sarawak, with 9 production lines and an annual output of over 29 million tons.
Petronas announced on Thursday that it is pleased to lift the force majeure on the supply of MLNG Dua natural gas from November 1st.
The company stated in a statement, “This decision was made after the successful commissioning of the Jerun and Kasawari natural gas fields earlier this year, which currently provide reliable sources of feed gas for Sarawak
In September 2022, due to sinking issues with a portion of the Sabah Sarawak Gas Pipeline (SSGP), Petronas announced force majeure in its natural gas supply to MLNG Dua, which transports natural gas from Sabah offshore oil fields to MLNG.
While carrying out repair work, the company conducted an investigation into the supply interruption of MLNG Dua, with a nominal liquefaction capacity of 9.6 million tons per year.
According to Upstream, they have decided not to resume using the 512 kilometer long SSGP to transport raw gas to MLNG – this 36 inch diameter mainline has a daily natural gas transportation capacity of 750 million cubic feet.
When considering whether to divert the SSGP around the collapsed area, Tengku Muhammad Taufik, CEO of Petronas, previously stated, “We have weighed the issue of diverting the pipeline… against introducing other supply methods. In fact, supplying gas directly to MLNG Dua may be safer, faster, and more reliable
MLNG Dua has signed regular sales contracts with customers, including Mitsubishi Corporation of Japan (also a partner in the project) and Northeast Electric Company.
Petronas added that it expresses “sincere gratitude” to stakeholders, partners, and customers for their trust and cooperation during the force majeure period.
Looking ahead, Petronas Malaysia reiterates its commitment to fulfilling its contractual obligations to ensure a stable and reliable supply of liquefied natural gas to meet customers’ energy needs
Petronas holds 80% of the operating shares of MLNG Dua, while Mitsubishi and the Sarawak state government each hold 10% of the shares.