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MULTINATIONAL CONSORTIUM TO BUILD WORLDSCALE LIQUEFIED NATURAL GAS COMPLEX IN MALAYSIA

 MULTINATIONAL CONSORTIUM TO BUILD WORLDSCALE
 LIQUEFIED NATURAL GAS COMPLEX IN MALAYSIA
 KUALA LUMPUR, Malaysia, April 27 /PRNewswire/ -- The M.W. Kellogg company of Houston and JGC Corporation of Japan once again will work as joint venture partners on a major gas processing complex.
 PETRONAS, the Malaysian national petroleum company, will undertake a massive expansion of its liquefied natural gas (LNG) complex at Bintulu, Malaysia, making it the largest LNG complex in the world. Kellogg and JGC, together with the Sime Engineering Sdn. Bhd. of Malaysia, Kellogg (Malaysia) Sdn. Bhd., and JGC (Malaysia) Sdn. Bhd. will engineer, procure and construct the expansion, estimated to cost approximately (U.S.) $1.6 billion.
 The project will double the current production of the existing complex, making it the largest gas processing complex in the world. Kellogg and JGC built the original complex for Malaysia LNG Sdn. Bhd., a joint venture with PETRONAS as the majority partner.
 The first complex, operating since 1983, uses three liquefaction trains to convert natural gas from reserves 70 miles offshore Sarawak. The addition of three more process trains will increase the capacity of the complex to a nominal 15.8 million metric tons a year of LNG.
 In the three process trains in the original facility, natural gas is cryogenically liquefied before being sent to storage in one of four storage tanks, each capable of holding 65,000 cubic meters of LNG. To serve the expansion, PETRONAS will add a fifth 65,000-cubic-meter- capacity tank, bringing storage capacity to 325,000 cubic meters.
 From storage, LNG from the current complex is shipped by supertanker to Japan. Product from the new facility will go to Korea, Taiwan and Japan.
 Construction of the complex will start in 1993, with the first train due onstream in 1995. The full expansion is slated for 1996 completion.
 Kellogg and JGC have worked together for many years and currently are working as joint venture partners on construction of a worldscale gas processing facility in Australia.
 NOTE: The contract for the $1.6 billion project was signed by M.W. Kellogg, JGC and PETRONAS officials at 2:30 a.m. CDT today in Kuala Lumpur, Malaysia (3:30 p.m. Malaysian time). This project will double the current production of the existing complex, which was built by Kellogg and JGC.
 -0- 4/27/92
 /CONTACT: Ray Waters, 713-753-2160, or Brian Levinson, 713-753-3031, both of M.W. Kellogg/ CO: M.W. Kellogg; JGC Corp. ST: IN: OIL SU:


SH -- NY051 -- 3102 04/27/92 11:37 EDT
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Publication:PR Newswire
Date:Apr 27, 1992
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