Air Liquide Engineering & Construction entered into a partnership with Samsung Engineering for the front-end engineering and design (FEED) study of a methanol production plant for Sarawak Petchem, a state-owned oil and gas firm established and owned by the state government of Sarawak, Malaysia. This FEED is a key step that will help decision makers get the necessary information to convert the contract into an engineering, procurement and construction (EPC) contract in the near future.

Leveraging their complementary strengths and know-how, Air Liquide Engineering & Construction and Samsung will carry out the study. Air Liquide Engineering & Construction will be the technology licensor while Samsung Engineering will design the project’s utility systems and balance of plant.

FEED is a key step that will help decision makers get the necessary information. The FEED will be exclusively converted to a licensor, engineering, procurement, construction and commissioning (LEPCC) contract at the end of the year subject to final decision.

The methanol plant, which will be located in Bintulu, Sarawak State, Eastern Malaysia, will come into operation in 2023. This new facility will produce 5,000 tons of methanol per day based on Air Liquide Engineering & Construction proprietary process technology, trademarked Lurgi MegaMethanol, which converts natural gas into methanol.

Air Liquide Engineering & Construction is a world leading methanol licensor, with more than 50 years of experience in plant design, engineering, procurement and construction offering customers safe, reliable and energy-efficient technology solutions.

“We are proud to have established this partnership which further enhances our position as the leading technology provider for methanol plants,” said David Maloney, chairman and CEO of Air Liquide Engineering & Construction. “Our Lurgi MegaMethanol technology for world-scale methanol plants with a production capacity of up to 2 million metric tons of methanol a year enables reliable production with cost-optimized energy efficiency and lower environmental impact. This renowned expertise and strong presence in Malaysia combined with Samsung Engineering’s strong track record in Southeast Asia as an EPC and project management company have been key to gain the trust of Sarawak Petchem.”