MISC Bhd has secured long-term charters from PETRONAS LNG Ltd (PLL) for five newbuild liquefied natural gas carriers, with each vessel to be deployed under a firm 20-year charter beginning in 2030.
The group said it accepted the letter of award from PLL on Oct 7, setting out the principal terms for the definitive time charter agreements.
In connection with the project, MISC will enter into shipbuilding contracts with Hudong-Zhonghua Shipbuilding (Group) Co Ltd for the construction of the five LNG carriers.
The shipping services will be provided through MISC’s wholly-owned subsidiaries.
MISC said the project is intended to support PETRONAS’ anticipated LNG production growth while advancing the group’s LNG carrier rejuvenation programme through the introduction of newer and more efficient vessels.
The new vessels are expected to help reduce greenhouse gas emissions and overall emissions intensity compared with older tonnage in the fleet.
PLL, which is involved in the buying and selling of LNG as well as the chartering and transportation of LNG vessels, is a wholly-owned indirect subsidiary of Petroliam Nasional Bhd (PETRONAS).
PETRONAS is also the holding company and a major shareholder of MISC.
The project is not subject to MISC shareholder approval or government approvals.
MISC said the charters are not expected to have a material impact on the group’s earnings per share, gearing, net assets per share or overall financial position for the financial year ending Dec 31, 2026, given that commencement is expected only in 2030.
The company did not disclose the contract value or the construction cost of the five vessels.
MISC’s board, excluding interested directors, said the project is in the company’s best interest, is fair and reasonable, and is on normal commercial terms.
