Wedoany.com Report-Jul. 26, Petronas LNG, a subsidiary of Malaysia’s state-owned energy company Petronas, has signed a heads of agreement (HoA) with SMJ Energy, enabling SMJ to participate in the floating liquefied natural gas (FLNG) project known as PFLNG 3, or the ZLNG project. The facility will be located nearshore at the Sipitang Oil & Gas Industrial Park (SOGIP) in the Malaysian state of Sabah.

Under the agreement, SMJ Energy, which is owned by the Sabah State Government, will acquire a 25% equity stake in PFLNG 3. The HoA was signed by SMJ Energy Chief Executive Officer Dionysia Aloysius Kibat and Petronas LNG Chief Executive Officer Shamsairi M Ibrahim. Definitive agreements are expected to follow, formalizing the terms of the partnership.

Petronas stated that the collaboration with SMJ Energy supports a stronger partnership with the Sabah State Government and promotes the responsible development of natural resources in the region.

PFLNG 3 is Malaysia’s third FLNG unit and is currently under development. The hull of the unit, named PFLNG Tiga, was launched in February 2025 by Samsung Heavy Industries (SHI), following a construction order placed by Petronas in December 2022. The initial front-end engineering and design (FEED) phase began in 2021.

PFLNG Tiga is a large-scale offshore facility, measuring 281 meters in length, 64 meters in width, and 32 meters in depth. Its size is approximately 2.5 times that of a standard soccer field and it has a launch weight of around 50,000 tons. Once operational, the unit is expected to produce up to 2.1 million tonnes of liquefied natural gas per year.

The facility is scheduled to commence operations in May 2027. According to consultancy Wood Mackenzie, the initial gas supply for the plant will be sourced from the Kebabangan field, which began production in November 2015. This field is expected to support full-capacity operations at PFLNG 3 until 2033.

In addition to this project, Petronas is progressing with the deployment of the floating storage and offloading (FSO) vessel Permata Dulang. A naming ceremony was recently held for the FSO, which will replace an aging unit that has served an offshore Malaysian oilfield for approximately thirty years.

The development of PFLNG 3 represents a key component in Malaysia’s efforts to enhance its natural gas infrastructure and increase LNG production capacity. The participation of SMJ Energy marks a step toward greater local involvement in national energy projects, aligning with broader regional development goals.