OREANDA-NEWS. September 24, 2012. GE Oil & Gas (NYSE: GE) today announced it will supply its gas turbine-driven compressor train technology to Malaysia’s national oil and gas company Petronas for a floating liquefied natural gas (FLNG) facility that is being developed off the coast of Malaysia.

The start-up of the FLNG facility is scheduled for the fourth quarter of 2015. It will be moored about 180 kilometers off the coast of Bintulu, Sarawak, and is designed to produce 1.2 million tons a year (mtpa) of LNG. Once on stream, the facility will boost Malaysia’s total LNG production capacity to 26.9 mtpa from 25.7 mtpa currently.

GE was awarded the contract with Petronas primarily on the basis of its technology as well as its experience in the LNG and offshore sectors. The order also takes advantage of GE’s global frame agreement with Petronas.

“This contract with Petronas underscores the confidence that gas producers have in our compressor technology to support the global LNG industry—including for one of the world’s first FLNG projects that represents an important growth initiative for our respective companies,” said Prady Iyyanki, president and CEO—turbomachinery for GE Oil & Gas. “We look forward to working with Petronas and its project partners to demonstrate how FLNG can help address Malaysia’s energy needs.”

GE’s compression trains are vital elements of the liquefaction process, which cools natural gas to a liquid state. GE’s scope of equipment supply includes four of its PGT25+G4 gas turbine generator systems, two PGT25+G4 gas turbine driven compressor units and two electric motor driven centrifugal compressors modules. GE is scheduled to deliver its equipment to Malaysia in August 2013.

GE Oil & Gas has a long relationship with Petronas that dates back to the Malaysia LNG project about 20 years ago.