Motor-driven Natural Gas Compressors Ordered for FPSO to be Used in Malaysia

Tokyo, May 13, 2015—Kawasaki Heavy Industries, Ltd. announced that it has received an order for two motor-driven natural gas compressors for a floating production, storage and offloading system (FPSO) from TH Heavy Engineering Bhd. The FPSO will be operated in Layang Field of Sarawak, Malaysia, in which JX Nippon Oil & Gas Exploration (Malaysia) Limited has 75% working interest as an operator.

An FPSO (in this case known as Layang FPSO) is a floating vessel designed to process and store crude oil or gas and liquid hydrocarbons, which are extracted from offshore oil and gas fields and will be offloaded onto a shuttle tanker and transferred ashore. This vessel can be operated at any water depth and is also easy to transfer and reuse.

The FPSO will be used for the development project at Layang Field, located 200 km off the coast of Bintulu, Sarawak, Malaysia. TH Heavy Engineering Bhd. is an engineering, procurement, construction, and installation (EPCI) contractor for the FPSO. Kawasaki's compressors will be installed on the FPSO and used to compress natural gas produced from Layang Field.

Natural gas produced from Layang Field, together with natural gas from Helang Gas Field, is planned to be supplied through subsea pipelines approximately 200 km long to the Malaysia Liquefied Natural Gas Tiga Sdn. Bhd. plant in Bintulu, Sarawak, Malaysia. The natural gas will be sold as LNG after liquefaction, while the condensate and Layang oil are planned to be shipped from the FPSO.

The order is a testament to Kawasaki's proven track record and reliability as a supplier of natural gas compressors. Previous orders include natural gas compressors for FPSO operated in Vietnam in 2012. Globally, Kawasaki has delivered over 250 compressors to date.

Kawasaki will continue to market equipment related to oil and gas development while actively pushing ahead with its energy and environmental businesses.