CEO Morning Brief

MISC Inks Shipbuilding Contract for Two LNG Carriers, Secures Long-term Charter With Petronas

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Publish date: Wed, 02 Oct 2024, 09:58 AM
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TheEdge CEO Morning Brief
 

KUALA LUMPUR (Oct 1): MISC Bhd (KL:MISC) has signed a shipbuilding contract with Samsung Heavy Industries Co Ltd for the construction of two new liquefied natural gas (LNG) carriers, scheduled for delivery in 2027.

MISC also signed a letter of intent with Petronas LNG Sdn Bhd (PLSB) for long-term shipping services involving the new carriers, the group's bourse filing on Tuesday showed. Financial details of the deals were not disclosed.

Meanwhile, MISC agreed with PLSB to terminate the charters of three existing LNG carriers — Seri Ayu, Seri Angkasa, and Seri Begawan — and entered into new agreements for two others, Seri Alam and Seri Amanah, upon expiry.

The new LNG carriers will be owned by MISC’s new special purpose vehicles to be incorporated later. It will be chartered to Petronas LNG Ltd for a firm 15-year period starting from 2027.

Petronas LNG is involved in the provision of management services, chartering of LNG vessels, trading in the spot market, and supplying LNG through its subsidiaries. It is wholly owned by Petroliam Nasional Bhd (Petronas).

“The new LNG carriers support the strategic intent of rejuvenating MISC’s LNG fleet with modern and efficient vessels towards achieving reduction of greenhouse gas emissions and intensity by 2030,” MISC said.

Samsung Heavy Industries, a South Korea-based company, is involved in the design, engineering, and construction of large ships, including LNG carriers, liquefied petroleum gas and ammonia carriers. It is also involved in other offshore projects such as floating production, storage, and offloading units.

Shares in MISC ended 13 sen or 1.67% higher at RM7.93 on Tuesday, giving the company a market capitalisation of RM35.4 billion.

Source: TheEdge - 2 Oct 2024

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