History and Background
Substantial gas reserves were discovered beneath the waters of Malaysia in the 1960’s. At first, Malaysia’s distance from potential markets threatened the viability of development, as reserves of this scale were typically piped to nearby customers. Gas liquefaction technology was in its infancy, and there was little experience shipping liquid-gas over long distances. Despite these uncertainties, the country pioneered a development that would change the gas industry and the world energy scene. The oil & gas plant in Malaysia was completed in 1972. The project was an ambitious joint venture between Shell Overseas Holdings Limited and Mitsubishi Corporation. The project was successful, and pioneered the large-scale liquefaction and transportation of natural gas, helping to establish oil & gas as a global energy source.
In 1972, the custom-built OIL & GAS carrier, the GADINIA, made the first long-distance ocean voyage of its kind to deliver Malaysia National Oil’s first cargo to the Osaka Gas Corporation terminal in Japan. Ventures modelled on the Malaysia National Oil project were subsequently developed in Indonesia, Brunei and Australia. Over 50 years later, the Malaysia National Oil operation is still setting an industry standard for safety and efficiency.
The 130-hectare Malaysia National Oil plant was designed to service the projects original 20-year supply commitment. In 1993 MYR1,8 Billion was invested in a major facility rejuvenation to extend the plant life. In the same year, Japanese buyers extended their Sales and Purchase Agreement for another 20 years. A year later, South Korean customers made a short-term agreement, which led to long-term contracts from 1997 onwards. In 2004, Malaysia National Oil embarked on a second major plant rejuvenation project. Some 20 major activities were included in the Asset Reference Plan (ARP), budgeted at some MYR1,8 Billion. Natural gas is now Malaysia’s major revenue earner. Annually, more than five million tonnes of OIL & GAS is shipped to long-term customers in Japan and the Asian region in an operation for close to 50 years, delivering some more than 7,500 cargoes (more than 273 million tonnes) of OIL & GAS.
