The Bintulu LNG complex in Malaysia is poised to boost liquefied natural gas output now that supplies are flowing from the Jerun field.
Malaysia-based SapuraOMV Upstream Inc., which operates the field about 100 miles off the coast of Malaysian state Sarawak, said it achieved first gas from Jerun in early July. SapuraOMV holds a 40% interest in the field.
The offshore platform is designed to produce up to 550 MMcf/d of natural gas. It would be delivered via pipeline to a production hub onshore. From there, it would be delivered to customers in the coastal town of Bintulu, including Malaysia LNG, which operates the nearly 30 million metric tons/year (mmty) liquefaction complex.
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SapuraOMV has a 40% stake in the field. Affiliates of Petronas and Shell plc own the remaining 60%.
“Adding to the country’s energy portfolio, this project promises significant contributions towards sustaining Malaysia’s long-term gas supply,” Petronas’ Datuk Ir. Bacho Pilong, senior vice president of Malaysian petroleum management, said.
Jerun is one of three gas projects expected to come online by 2027 to boost output and utilization at the Bintulu complex, one of the largest liquefaction terminals in the world.
It has contended with feed gas issues in recent years. Malaysian output has averaged nearly 27 mmty over the last three years, according to Kpler data.
While output has been declining, the facility is still a stabilizing source of supply in Southeast Asia. Earlier in the year, outages at Bintulu and Chevron Corp.’s Gorgon LNG terminal in Western Australia helped put pressure on Asian prices.
The field was discovered in 2015. Shell, one of the world’s LNG traders, sanctioned the project in 2021. The company has forecast global LNG demand to rise by more than 50% by 2040, driven by industrial coal-to-gas switching in Asia.
