Malaysia to receive LNG from Australia in 2015

Malaysia can expect to receive the first Liquefied Natural Gas (LNG) cargo from the conversion of coal seam gas (CSG) from the Gladstone Liquefied Natural Gas (GLNG) project in Australia in the first quarter of 2015.

GLNG, a joint-venture project between Malaysia's Petronas, Santos, Total and KOGAS, is a pioneering iniatitive to convert CSG or sometimes referred to as "coal bed methane" into LNG as a cleaner energy source for export to the global market.

Deputy Prime Minister Tan Sri Muhyiddin Yassin, who is on a nine-day working visit to Australia, was briefed on the project by Petronas Australia Pty Ltd officials here Wednesday.

Based in Queensland, the GLNG project involves developing gas fields from the Bowen and Surat Basins in south western Queensland and will transport the gas via a 420 kilometre underground pipeline to an LNG plant on Curtis Island, off the coastline of Gladstone.

The project has binding LNG off-take agreement with KOGAS and Petronas. At the briefing, Muhyiddin acknowledged that the project was important to Petronas as it was part of the national oil company's aspiration to grow its unconventional and global LNG business.

He said Petronas was fully committed to the success of the GLNG project, including to ensure that the project met the required health, safety and environment standards.

"The GLNG project is progressing well and we hope to continue this good work moving forward," he said.

Muhyiddin also expressed the hope that Petronas, which currently enjoys a good relationship with all the project partners, would continue to strengthen the ties further.

He said the GLNG project has been getting good support from the relevant authorities in Australia.

"We look forward to receiving the first CSG to LNG cargo to Malaysia to come from the GLNG project by the first quarter of 2015," he added.