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Journal of Australian Energy Producers
RESEARCH ARTICLE (Non peer reviewed)

Turning CSG into LNG into reality*

Majid Khalil
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- Author Affiliations

PETRONAS Australia Level 36, Santos Place, 31 Tank Street, Brisbane QLD 4000 Australia. Email: majidak@petronas.com.my

The APPEA Journal 50(2) 717-717 https://doi.org/10.1071/AJ09081
Published: 2010

Abstract

Energy demand is expected to grow further. Given increased environmental concerns, natural gas will have a heightened role in the future. In 2006, natural gas constituted 22.9% of the global energy mix and this is forecasted to increase annually by 1.6%. The industry will need to tap unconventional resources primarily from CSG reserves.

Given the high cost environment seen in the industry in recent years, coupled with the current global economic recession, delays in FID decisions will mean a tight market situation post-2014. Therefore, it is important that the CSG to LNG proponents surmount the inherent challenge of developing the unconventional resources to meet the growing market needs.

An LNG development carries with itself commercial and technical challenges across the integrated chain. With the added intricacy of developing large-scale CSG reserves, it is very important that the CSG to LNG proponents understand the complex nature of an integrated LNG development.

The development of Malaysia LNG (MLNG), MLNG Dua and MLNG Tiga in Malaysia and ELNG in Egypt involved a total of 10 LNG trains equating to approximately 32 Mta of volumes. PETRONAS offers 30 years’ experience in developing large-scale integrated LNG projects from wellhead, pipelines, liquefaction and re-gasification facilities.

Although the techno-commercial understanding of the integrated LNG project is a must-have, what cannot be ignored is the need for a well-coordinated collaboration among all key stakeholders, between the individual project developers, the community, LNG customers, and, importantly, the authorities, in order to enable the economic benefits to be shared.

Keywords: CSG, LNG, PETRONAS, Santos, GLNG, Majid, partnership, integrated, collaboration, relationship, Malaysia, Bintulu, RSPT, CPRS, natural gas, Australia, reserve, demand, supply, global, export, unconventional, far east market, project, Gladstone, commercial, technical

Managing Director/Chief Executive Officer—PETRONAS Australia Pty Limited. Majid graduated from the University of Bristol, UK, in 1976 with a BSc (Hons) in electrical engineering. He holds citizenship of Malaysia.

Majid joined PETRONAS in 1977 and has been with the company for over 30 years. He has played an extensive role in the development of the downstream business of PETRONAS, including gas processing, LNG and petrochemicals.

In 1978 Majid joined the pioneering LNG project team to develop and implement the LNG project in Bintulu, Malaysia. This was a three train project with all the infrastructure and support facilities. He spent a total of 12 years in MLNG during all phases of the project from design, construction, commissioning and subsequent plant operations.

From 1990 Majid has been involved in the setting up of various petrochemical ventures in Malaysia and managing a number of these joint venture companies in the subsequent years.

Presently Majid is the Managing Director Chief Executive officer of Ethylene Malaysia and Polyethylene Malaysia.

Majid’s most recent appointment is Managing Director? Chief Executive Officer of PETRONAS Australia Pty Ltd.