MLNG SATU

Image Source : PETRONAS – MLNG Plant

Location : Bintulu, Sarawak

Malaysia’s history as a major LNG producer began with the discovery of substantial gas reserves in Sarawak’s Central Luconia basin, 125 km from Bintulu, in the 1960s. On 31st March 1978, PETRONAS signed a joint venture agreement with Shell BV, Mitsubishi Corporation and Sarawak government to initiate the country’s first liquified natural gas projects. The small town of Bintulu in the island of Borneo, Malaysia was selected as an ideal site due to its strategic location and proper geographical condition for developing Sarawak’s first deep sea port, specifically to cater to large LNG ships that will call the port in the future. The Petronas LNG complex is built on an area covering over 276 hectares.

On 14th June 1978, Malaysia LNG Sdn. Bhd. (MLNG Satu) was incorporated with a 25-year ownership agreement between PETRONAS (65%), Shell B.V. (15%), Mitsubishi Corporation (15%) and the state government (5%). On 7 August 1982, Malaysia’s first liquefaction plant was completed and MLNG started its operation on November 1982. The facility has 3 LNG processing trains of combined capacity 8.1 MMTPA and 4 LNG storage tanks of capacity 65,000 cubic meter each. On 29 January 1983, first cargo was shipped to Japan on board the LNG carrier, ‘Tenaga Satu’. After the 25-year period the ownership was revised to PETRONAS (90%), Shell B.V. (5%) and the state government (5%).

The plant uses Air Products & Chemicals Inc.’s (APCI) Propane Pre-cooled Mixed Refrigerant (C3-MR) liquefaction concept and has maintained a 100% success delivery rate to its customers, establishing a reputation as a preferred and reliable LNG supplier in the world. At one point of time the PETRONAS LNG complex became the world’s largest LNG processing facility in a single location, until Qatar established itself as an international LNG giant. The plant exports Liquefied Natural Gas (LNG), Propane and Butane (LPG) and Gasolene. MLNG has long term contracts with several Japanese customers including Tokyo Electric Power Co. Inc. and Tokyo Gas Co. Ltd., who renewed their 20-year sale and purchase agreement on 17 March 2003. Other major clients include KOGAS of South Korea, CPC Corporation Taiwan (CPC) of Taiwan and Shanghai LNG Co Ltd (SHLNG) of China.

MLNG is actively involved with various education, capability-building and outreach programmes. The initiatives cover a wide range of human development needs to improve the lives and well-being of both present and future generations. Dedicated skills development and industrial training programs have been initiated for nurturing its workforce as well as providing valuable exposure to students from the community. The company claims that sustainability is an integral part of how they operate, as they conduct their business in an ethically, socially, and environmentally responsible manner. Biodiversity, Environmental and Conservation (Beacon) Project at Similajau National Park (SNP) is a collaborative venture with Sarawak Forestry for the preservation and conservation of marine biodiversity in Bintulu waters through programs such as Friends of Nature.

MLNG deployed approximately 1,500 artificial reef balls at the Similajau National Park, at a cost of RM4.6 million, to improve the livelihood of the local community and biodiversity conservation.

OWNERSHIP (Equity %)

PETRONAS	90.00%
Mitsubishi Corporation	5.00%
Sarawak State Government	5.00%

General Data

Estimated Capital Cost (USD)	NA
Plant Type	Onshore Stick-built
Plant Stage	Operating
Final Investment Decision (FID) Year	1978
FEED Contractor	Shell Internationale Petroleum Maatschappij (SIPM)
EPC Contractor	JGC Corporation Kellogg
No. of Trains / capacity	3 Trains / 2.8 MMTPA each
Production Start Year	1983
Products	Liquefied Natural Gas (LNG), Propane and Butane (LPG) and Gasolene
Gas Type	Non-associated Gas (NAG)

Technical Data

Cooling Media	Seawater
Liquefaction Technology	APCI AP-C3MR™
Refrigeration Train Details:
Propane String
Driver	Mitsubishi 9CL-12 (42.3MW) Condensing Steam Turbine
Propane Compressor	Mitsubishi Compressor Corporation Horizontally Split Centrifugal Compressor
Low Pressure (LP) Mixed Refrigerant (MR) String
Driver	Mitsubishi 9CL-12 (41.6MW) Condensing Steam Turbine
LP MR Compressor	Mitsubishi Compressor Corporation Horizontally Split Centrifugal Compressor
HP Mixed Refrigerant (MR) String
Driver	Mitsubishi 9CL-12 (41.6MW) Condensing Steam Turbine
HP MR Compressor	HP MR Compressor Dresser-Rand Radially Split Centrifugal Compressor
Power Generation	GE/Hitachi MS5001 Heavy Duty Gas Turbines + MHI Steam Turbine Generators

Refrigeration Train Configuration

Key Facts

MLNG Satu was Malaysia’s first LNG plant. The Petronas LNG complex was built to expand to multiple trains in the future. Malaysia was the world leader in LNG trade and accounted for 13% of total LNG exports until overtaken by Qatar in 2007. Today it ranks as the third largest LNG exporter in the world, after Qatar and Australia.¹
Malaysia LNG Sdn Bhd (MLNG) was incorporated on 14 June 1978 as a joint venture between PETRONAS, Shell Gas B.V of The Netherlands and Mitsubishi Corporation of Japan for the development of the LNG project in Bintulu. On 22 November 1985, with the entry of Sarawak State Government, MLNG Satu’s shareholding became PETRONAS (65%), Shell Gas B.V. (15%), Mitsubishi Corporation (15%), and the Sarawak state government (5%). After completion of the 25 years term of the Joint Venture Agreement with Shell Gas B.V. and Mitsubishi Corporation, in 2003, PETRONAS equity in MLNG increased to 95%, while the Sarawak State Government continued to hold its 5%. However, in December 2003, Mitsubishi reacquired a 5% share from Petronas.^2,3
Japan has played a pivotal role in the success of MLNG. JEXIM extended loans to Petronas and Mitsubishi for the construction of the first 3 trains.⁴
MLNG ordered five LNG vessels to be constructed in France. Malaysian International Shipping Corporation (MISC), Petronas’ subsidiary operating these vessels, eventually developed one of the largest global fleets, consisting of 29 vessels.⁵
MLNG Satu is the last Greenfield plant in the world to use steam turbines for driving refrigerant compressors. The three steam turbines at the plant are supplied by Mitsubishi.^6,9
MLNG Satu’s maiden cargo was delivered to Japan’s Tokyo Gas. On January 29, 1983 “TENAGA SATU” departed from Bintulu, delivering Malaysia’s first LNG cargo at Sodegaura Terminal on February 7, 1983.⁷
Japan is MLNG Satu’s major market, with customers including Tokyo Gas, Tokyo Electric (TEPCO), Hiroshima Gas, Saibu Gas, etc.⁸
MLNG Satu and MLNG Dua share several utilities, however they have two separate gas supply systems, as MLNG Satu is designed for sweet gas with negligible H₂S, while MLNG Dua processes sour gas, containing up to 300 parts per million by volume (ppmv) H₂S.⁹
The steam-driven MLNG Satu plant requires massive infrastructure for the steam and steam-condensate utility system. In contrast the MLNG Dua and Tiga trains have lesser equipment and optimization of process design. As a result the later trains could achieve far lower capital cost per ton LNG capacity.⁹
A 3-bundle design is used for the cryogenic exchanger at MLNG Satu (warm, middle and cold). This design is suitable to meet the refrigerant make-up under all conditions. The design was discarded for a 2-bundle version for MLNG Dua, however that required stringent adherence to operation guidelines, hence the 3-bundle design was re-employed in MLNG Tiga.⁹
The steam turbines at MLNG Satu have proven their reliability with a 9-year overhaul scheme. In addition, they are not only easier to operate, but also require minimal instrumentation and safeguarding. However, their main advantage is the short re-start time, of under an hour after a trip.⁹
Shell’s Sulfinol-D process removes the acid gas components, where treated gas is dried using molecular sieve beds. The MLNG Satu trains were operating at up to 125% (7.5 MMTPA) of original design, this led to occasional restricting of capacity due to the molecular sieve unit. The issue was addressed by replacing the molecular sieve in between scheduled 3-yearly shutdowns.⁹
The MLNG Satu plant originally did not have any mercury removal facilities. However, progressively growing mercury levels in the feed gas necessitated retrofitting fixed bed adsorbers for mercury removal in the 3 trains in 1995.⁹
In 1995, a re-instrumentation project was undertaken to replace the obsolete pneumatic instrumentation of MLNG Satu with a Distributed Control System (DCS). This also necessitated the introduction of an Advanced Process Control (APC) for DCS. The project was successfully completed in mid-2000.⁹
In 1996 MLNG Satu implemented the Sour Vent Gas Combustion Project. The project expressively reduced hydrocarbon emissions and achieved better boiler efficiency, by collecting the sour gas produced in the Sulfinol unit and introducing it into the flames of one of the three available steam boilers. This was followed with a revamp project to connect the sour gas transfer line to the other 2 boilers as well.⁹
In 1999, a “Rejuvenation Project” was initiated to ensure long-term reliability for another 20 years. KBR, JGC Corporation and OGP Technical Services (OGP) were engaged for dedicated maintenance efforts ranging from complete overhaul to a full replacement by new equipment. ⁹
As a part of the MLNG Rejuvenation & Revamp (MRR) Project Trains 1-3 were revamped in 2003, 2004 and 2005 respectively. Each train was shutdown for 120 days instead of the customary 25 days period of DOSH (Malaysian Department Of Safety and Health). Additionally, revamp of Sulfinol units of MLNG Satu and Dua was performed, to account for higher anticipated levels of CO₂ in feed gas.¹⁰
Higher concentration of CO₂ was anticipated in the feed gas supply to MLNG Satu & Dua, which could result in reduction of capacity. In a proactive and preventive move, the capacity of the acid gas removal and disposal facilities of the plant was increased through several means:¹⁰
> Re-traying Sulfinol Regenerator / Absorber Columns
> Capacity upgrade of Sulfinol Fin Fan coolers (Regen. Reflux Condensers)
> Addition of lean sulfinol heat-exchangers
> Replacement of Sulfinol Regenerator Re-boiler bundles in stainless steel
> Addition of Acid Gas Incineration Facilities in Boilers
> Upgradation in Condensate polishers
To sustain the production level of 125% of design capacity, plus a 3% operational margin revamp and rejuvenation of the main compressors and drivers was also undertaken:¹⁰
> Complete overhaul of each refrigerant compressor.
> Compressor labyrinth design were upgraded for rotor stability
> Complete overhaul of each steam turbine driver and replacement of the first steam nozzles that increased the power output by 10%.
> The gear type couplings were replaced by contoured disc type couplings.
> Replacement of the recycle gas compressor for a higher capacity unit.
> Modification of pump impellers and piping in order to increase capacity of the sea cooling water system.
MLNG Satu (Trains 1-3) is the only plant in the complex that still uses once-through sea water cooling as its cooling media with the help of three parallel lines running 3km from the jetty and transporting 210,000m³/hr of seawater.¹¹
On December 25, 1997, a major gas explosion forced the shutdown of the facility for months for repairs. Property damage loss worth USD 275 million (USD 510 million as of December 2017 by adjusting inflation) was estimated. The explosion occurred in the air separation unit (ASU) which supplied oxygen for the production of synthesis gas feedstock.¹²
In 2016, the MLNG SATU Molecule Allocation Program (M-MAP) was launched to maximize LNG for a given feed by improving plant efficiency. The 2 phase program managed to improve the overall efficiency by 1.3% and 0.5% in each phase.¹³