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ABB wins massive floating LNG contract

ABB has won a massive contract to supply electrical systems for PETRONAS's second floating LNG plant, the PFLNG2.

The work, worth more than $50 million, will see ABB install and optimise the facility's electrical side by designing, manufacturing, and supplying transformers, switchboards, motor-control centres, and a power management system.

ABB will also manage the installation of the equipment and ensure the electrical supply is integrated with systems it is powering.

It was awarded the contract by JGC Corporation, which is building the floating processing plant for PETRONAS, in conjunction with Samsung Heavy Industries of Korea.

Head of ABB's process automation division, Peter Terwiesch, said the company is delighted to win this project.

"FLNG is a market with great potential and we are well placed to deliver to it with our vast experience in floating production, our extensive manufacturing base, and solutions in offshore oil and gas; our electrical system solution incorporates the latest technologies adapted to the offshore environment."

The machinery and controls supplied by ABB for PFLNG2 will be accommodated in two electrical houses, or e-houses, that run to the lenght of a five storey building.

The PFLNG 2 will be buitl in Geoje, Korea, where Shell built its Prelude FLNG ship.

The FLNG market is opening up new options for the oil and gas industry.

The new technology means the company will be able to access gas resources previously regarded as “stranded”, with the process being touted as the potential saviour of the LNG industry as high costs continue to hamstring onshore projects.

According to a recent report by Douglas-Westwood, the FLNG market is estimated to be valued at around $64 billion between now and 2020.

Shell has said there would about 350 people working on Prelude by 2017 and 650 indirect jobs, with the project set to inject $45 billion to the Australian economy over its lifetime

Santos and GDF Suez are also looking into the development of a FLNG vessel for the Bonaparte Basin, 250 kilometres west of Darwin. A final investment decision is expected in mid-2015.

While BHP and ExxonMobil have been granted Federal approval for a massive floating LNG plant off the West Australian coast near Exmouth, a project worth $10 billion.

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