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Bureau of Mines / Minerals yearbook mineral industries of Asia and the Pacific 1992
Year 1992, Volume 3 (1992)

Wu, John C.
Malaysia,   pp. [248]-258 ff. PDF (2.7 MB)

Page 253

 barrels of oil.THE MINERAL INDUSTRY OF MALAYSIA—1992  253temporary
2-year license. During the 2year period, MTC was required to conduct an operational
monitoring program. At the end of 1992, a report on the operational monitoring
results was submitted to MAELB. A permanent license would be granted if results
of the operational monitoring program were found satisfactory. According
to Hitox Corp. , MTC also was granted permission to operate the plant by
the Malaysia Department of Environment following submission of a detailed
environmental impact assessment by MTC in December 
Mineral Fuels 
 Coal.—In 1992, coal production was by Global Minerals Sarawak
at the
Beradai deposit in the Merit-Pila area near Kapit in Sarawak. According to
the Geological Survey of Malaysia, coal resources of the Merit-Pita coalfield
were estimated at 387 Mmt, of which 88 Mmt were measured reserves, 76 Mmt
indicated reserves, and 223 Mmt inferred reserves. Most of the coal output
from the area was exported to Japan, the Republic of Korea, and Taiwan. In
1991, Sarawak exported 64,859 tons of coal and earned about $2 million. Coal
exports in 1992 were estimated at 74,000 tons and valued at about $2.5 million.
 Natural Gas.—Overall natural gas production from offshore Sabah,
and Terengganu averaged about 63 Mm3/d. In 1992, about 60% of the natural
gas was produced by Sarawak Shell Bhd. (SSB) from the Central Luconia gasfields
offshore Sarawak. The remaining natural gas was produced by Sabah Shell Petroleum
Co. (SSP) from the Samarang Oilfietd offshore Sabah and by Esso Production
Malaysia Inc . (EPMI) from the Duyong Gasfield, and the Gungtong, Kepong,
and Bekok Oitfields offshore Terengganu. 
 In September, EPMI brought onstream its Jerneh Gasfield in the South China
Sea offnorthern Terengganu coast, containing about 85 billion m3 of gas reserves,
equivalent to one-half billion 
The initial cost of 
developing the Jerneh field was estimated at $550 million. The initial capacity
of the gasfield was 12.7 Mm3/d and will be gradually increased to 21 .2 Mm3/d
when demand grows in the 1990's. 
 The natural gas produced from three Central Luconia gasfields (El 1 , F6,
and F23) at the rate of 38 Mm'/d was delivered as feedstock to the LNG and
nitrogen fertilizer plants in Bintulu, Sarawak. The natural gas produced
from the Samarang Oilfield at the rate of 2 Mm3/d was delivered as feedstock
to a methanol plant and as a power source for a 79-MW powerplant and a sponge
iron plant on Labuan Island off Sabah. The natural gas produced from the
Duyong Gasfield and Guntong, Kepong, and Bekok Oilfields at the rate of 23
Mm'/d was delivered as the power source for a 900-MW powerplant in Paka,
the PTSB iron and steel complex in Telok Kalong, Terengganu, and as a feedstock
to a gas processing plant and a liquefied petroleum gas production plant
in Kerteh, Terengganu. 
 LNG production in Bintulu, Sarawak, rose to 7. 8 Mmt in 1992. To carry out
further expansion of LNG production capacity in Bintulu, Sarawak, PETRONAS,
the State-owned oil and gas company, entered into an agreement with Shell
Gas B.V. of the Netherlands, Mitsubishi Corp. of Japan, and Sarawak State
government for the establishment of a joint-venture firm called Malaysia
Liquefied Natural Gas Dua Sdn. Bhd. (MLNGD) for managing the LNG expansion
project in May. MLNGD has an authorized capital of $392.6 million, of which
60% is owned by PETRONAS, 15% each by Shell Gas B.V. and Mitsubishi Corp.
, and 10 % by the Sarawak State rn'0 The partners of MLNGD were the same
as those of Malaysis Liquifid Natural Gas Sdn. Bhd. (MLNG), which began operation
in 1983 and had produced and exported about 50 Mmt of LNG to Japan since
 In mid-1992, PETRONAS awarded a $1.6 billion contract to a consortium of
M.W. Kellogg Co. of the United States, JGC Corp. of Japan, and Sime 
Engineering Sdn. Bhd. of Malaysia for expanding the Bintulu LNG plant in
Sarawak. The contract called for engineering, procuring, and building three
new LNG trains to double the production capacity of the Bintulu LNG plant
to 15.8 Mmt/a by l99S.~ To accommodate the expanding LNG output capacity,
the company will also build a fifth 65,000-m3-capacity storage tank, bringing
the total LNG storage capacity to 325,000 m3 at the Bintulu LNG complex.
 Exports of LNG by MLNG to Japan totaled about 7. 1 Mmt and were valued at
about $1 billion in 1992. Most of the LNG produced in 1992 was exported to
three Japanese utility companies, Tokyo Electric Power Co. Tokyo Gas Co.
, and Saibu Gas Co. , under two 20-year supply contracts signed separately
in 1983 and in 1990. MLNG began shipping about 
58,500 tons of LNG to Korea Gas Corp. of the Republic of Korea in 1992 under
a 3-year supply contract signed in 1991. In September, MLNG signed another
20year contract to supply 500,000 mt/a of LNG to Tohoku Electric Power Co.
~ Japan beginning in 1996. 
 As part of the second phase of the Peninsular Gas Utilization (PGU-II) project,
the second and the third 7-Mm~/d gas processing plants at Telok Kalong ~
near Kertek in Terengganu, the upgrading and expanding of the Kertek export
terminal facilities, and the ethane extraction facilities had been completed
in 1992. The entire construction project was awarded in 1990 to a consortium
composed of SWES Zainal Sdn. Bhd. of Malaysia, Hyundai Engineering and Construction
Co. of the Republic of Korea, and Sumitomo Corp. of Japan. 
 The Government of Malaysia announced in February that it planned to complete
the third phase of the Peninsular Gas Utilization project (PGU-III) by 1995.
The $1 billion PGU-III project, under design and engineering studies, involved
construction of a 530-km pipeline network for extending the existing 730-km
gas pipeline (PGU-II) northward from Meru in Kiang to Bukit Keteri in Perlis
on the west coast near the border with Thailand. Studies were also 

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