National oil and gas company Petronas (Petroliam Nasional Bhd) announced that they have embarked on an RM15 billion project with its PSC (Production Sharing contract) partners. This would be an upstream project where they will be extracting gas from fields off the Peninsular Malaysia and will also involve building a 200km pipeline. According to Petronas, the project will cover the 9 discovered gas filed in the Bargading area which is located about 300km off the Peninsular’s coast.
The project is called North Malay Basin project and is part of the initiative to meet the gas demand in Peninsular Malaysia through extracting gas with high carbon dioxide.
The gas fields are within Blocks PM301 and PM302 respectively and the pipeline will transport gas from the fields in Kerteh in Terrengganu. Petronas also said that the come early 2013, they collaboration will see the first delivery of 100 million standard cu ft of gas per day and by 2015 they are targeting to increase the volume to 250 million.