MISC wins 20-year charters for five new LNG vessels
Operations are expected to begin in 2030 under the agreement with PETRONAS LNG Ltd. The contract value was not disclosed.
MISC Bhd has signed an agreement with PETRONAS LNG Ltd covering five new liquefied natural gas (LNG) carriers, each with a firm 20-year charter. In a Bursa Malaysia filing, the shipping group said operations are expected to start in 2030.
The agreement was signed on Oct 7. MISC will deliver the shipping services through wholly-owned subsidiaries, but did not disclose the contract value.
MISC said it will place shipbuilding contracts with China’s Hudong-Zhonghua Shipbuilding (Group) Co Ltd to build the vessels. The shipbuilder belongs to China State Shipbuilding Corporation Ltd.
The group said the project is intended to respond to anticipated growth in PETRONAS’ LNG production and renew its LNG fleet. It said the new vessels are aimed at lowering greenhouse gas emissions and overall emission intensity.
PETRONAS holds a 51% stake in MISC and is the ultimate parent of both parties to the agreement. PETRONAS LNG, incorporated in Labuan, trades LNG, charters vessels and handles LNG transport and supply.
MISC identified commercial, execution and operational risks associated with the project, saying it would use existing controls and its operational experience to manage them.
At the Oct 8 close, MISC shares stood at RM7.54, a decline of 16 sen or 2.08%, valuing the group at RM33.7 billion. The stock was down 2.08% for the year.
