State-owned Petronas has started construction on Malaysia’s third floating LNG (FLNG) facility to better help it capitalize on stranded natural gas assets amid failing production from other fields. 

The design and construction of the nearshore facility “is expected to be simpler, and upon completion, has the potential for improved production uptime as it will be located within a protected bay area” versus an offshore liquefied natural gas facility in the open seas, management said in a statement. 

Malaysia is struggling with declining output from its upstream assets. Its first two operating FLNGs have helped unlock the country’s gas reserves in remote and stranded fields, which were previously considered uneconomical for conventional exploration and production.