Petronas has awarded parallel front-end engineering and design contracts for its proposed third floating liquefied natural gas (FLNG) vessel, to be deployed offshore Sabah, East Malaysia.

South Korea’s Samsung Heavy Industries with Japanese engineering partner JGC will now go head-to-head with a pairing of Saipem and China’s Hudong-Zhonghua Shipbuilding in the contest for a newbuild FLNG project that Petronas has dubbed ZLNG, multiple contracting sources told Upstream.

The FEED work is expected to take between 10 and 12 months to complete, with the preferred consortium then expected to secure the engineering, procurement, construction and commissioning workscope as a follow-on contract.