UK-based engineering and construction contractor Petrofac has landed a $96 million engineering, procurement, construction and commissioning (EPCC) contract to supply Malaysian oil company Petronas with a new gas processing facility near Bintulu, Sarawak.

The workscope for the project - dubbed Bintulu Additional Gas Sales Facilities 2 (BAGSF2) - includes the engineering and construction of a processing and utilities unit, plus an effluent treatment unit to reduce the environmental footprint of operations, a metering skid, a fire water tank, pumps, a flare system and a main substation building.

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The new facility will have a daily handling capacity of 390 million cubic feet of gas.

Petrofac will also implement brownfield modifications and the tie-in of the new facility with a similar processing plant that Petronas already operates in Bintulu.

The UK contractor emphasised local content and services in the award, with chief operating officer Nick Shorten saying that the contract will be managed by its country’s subsidiary, Petrofac Engineering Services Malaysia.

Another Petrofac’s subsidiary in Malaysia, Petrofac-RNZ, will work with local supply chain and subcontractors and provide engineering support to the project, according to Shorten.

Bintulu is a major industrial site in Malaysia, where Petronas operates the country’s largest liquefied natural gas plant at the nearby port of Tanjung Kidurong, with an annual production capacity of about 30 million tonnes.

BAGSF2, which will be built at Tanjung Kidurong, will handle the incoming mix of natural gas and hydrocarbon liquids.

This new contract is based on long-term mutual cooperation between Petrofac and Petronas, with the UK contractor recently bringing on stream the East Cendor oilfield on offshore Block PM 304 in partnership with Petronas Carigali and Kuwait Foreign Petroleum Exploration Company (Kufpec).