2025 Global Review +: Brunei OKs First Deepwater Gas Development Project

Houston-based offshore contractor McDermott Worldwide received a contract from a unit of Malaysia government-owned vitality agency Petronas for engineering, procurement, building, set up and commissioning of a subsea pure gasoline growth venture 75 miles off the coast of Brunei on the island of Borneo. The contractor describes the Kelidang venture as “one of many nation’s most important standard gasoline tasks” and the primary in deep water of about 150 meters.

No contract worth was disclosed, however reviews estimate it at “as much as $1 billion” and the event funding at practically $1.4 billion, with remaining funding accepted in November. McDermott’s award follows its front-end engineering and design work for the venture, it says.

Beneath the contract scope, the corporate will present providers for a subsea manufacturing system and related infrastructure, together with umbilicals, raisers and flowlines, to attach six wells to a floating manufacturing unit for pure gasoline restoration. It’ll additionally present providers for a gasoline export pipeline that can provide feedstock to Brunei’s liquefied pure gasoline sector. The venture would have every day gasoline processing capability of 450 million cu ft.

McDermott’s engineering heart in Kuala Lumpur, Malaysia will lead venture administration, stated Mahesh Swaminathan, senior vice chairman. MISC, a unit of Petronas and a number one Malaysian maritime contractor, is also engaged on the venture. Petronas will function the venture and has a forty five% stake. Further stakeholders embody Murphy Oil, Shell, Mitsubishi Corp. and Brunei Nationwide Petroleum Co. Industrial manufacturing is about to start by about 2030.

Brunei’s economic system grew 4.2% in 2024, with comparable expectation for 2025, and oil and gasoline income key to that development, stated a latest University of Brunei report. “Whereas the share of upstream exports has declined, this has been largely offset by development in oil and gasoline and chemical-related merchandise,” it stated. The share of gasoline exports fell from 95.2% to 80% between 2010 and 2022, whereas chemical product exports grew from 1% to 17.5%. “Strategically diversifying into these … for export is each worthwhile and sustainable,” the report stated.

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$2B
Remaining funding determination quantity for Gorgon 3 offshore gasoline growth venture in western Australia accepted by vitality agency Chevron and companions on Dec. 4. It’ll hyperlink two offshore gasoline fields to Barrow Island gasoline gathering infrastructure and LNG  manufacturing amenities.  

Supply: Chevron Australia

Subsequent Canada LNG Export Web site May Begin Work 

Development of the proposed Ksi Lisims LNG export terminal in Prince Rupert, B.C.—initially estimated at $10 billion and set to be Canada’s second such facility—might begin in 2026 after Canada Prime Minister Mark Carney stated it will be added to a listing of nationwide infrastructure tasks being fast-tracked to spice up the economic system.

Set to be a two-structure, low-carbon floating LNG facility with a deliberate 12 million metric ton-per-year capability when working in 2028-29, Ksi Lisims is a three way partnership of U.S. and Canada pure gasoline producers and the Nisga’a First Nation, and is about to challenge a remaining funding determination early subsequent yr.

Contractors embody Black & Veatch for front-end engineering; Samsung Heavy Industries for building; Siemens Power for electrical techniques; and Ledcor for early web site work. Bechtel is pipeline contractor for the as much as 560-mile Prince Rupert Gasoline Transmission pipeline that can carry gasoline from northeast British Columbia to the location, additionally on the fast-track record.

However each tasks have confronted opposition from environmental teams and First Nations tribes.

KSI Lisims follows startup this yr of the 14-million ton-per-year LNG Canada export facility, additionally in British Columbia.