The state government of Sabah, Malaysia has agreed to raise its stake in “ZLNG,” the third floating liquefied natural gas (FLNG) project being developed with national energy company Petronas, from 25% to 40%, it is reported.
The ZLNG project, also known as PFLNG Tiga, involves the construction of a floating LNG facility at the Sipitang Oil and Gas Industrial Park (SOGIP) in Sabah. The facility reportedly measures 281 meters in length, 64 meters in width, and 32 meters in depth, with a launch weight of about 50,000 tonnes. Construction of the facility is being carried out by Samsung Heavy Industries, according to reports. Sabah has held a 25% stake in the project since a Heads of Agreement (HoA) signed in July 2025, and has now agreed to raise that stake to 40%; a formal agreement is expected to be signed within the coming months, it is reported. Separately, Sabah has also agreed to take a 20% stake in a new oil and gas field development project near Sandakan, according to reports.
Sabah has recently been expanding its equity participation in resource development projects in an effort to increase its share of regional energy revenue, it is reported.
Implications for Korea’s Industry
As Samsung Heavy Industries is constructing the facility, the project is cited as relevant to Korean shipbuilders’ track record in securing floating LNG facility orders.
Attention is focused on when the formal equity agreement will be signed, and on whether the targeted May 2027 startup will be achieved.