KUALA LUMPUR (May 12): Petroliam Nasional Bhd (PETRONAS), through its unit PETRONAS LNG Ltd (PLL), has signed a 20-year time charter agreement with MISC Bhd (KL:MISC) for five new 174,000-cubic metre liquefied natural gas (LNG) carriers.

In a press statement on Tuesday, PETRONAS said vessels will be built by China’s Hudong-Zhonghua Shipbuilding (Group) Co Ltd in Shanghai following shipbuilding contracts finished earlier this year by MISC.

Under the agreement, charter operations are scheduled to begin between 2029 and 2030.

“The addition of these new LNG carriers marks another important milestone as we continue leveraging the collective strengths of our businesses to create long-term value across the LNG value chain,” said PETRONAS executive vice-president and CEO of gas and maritime business Datuk Adif Zulkifli.

The indicative value of the agreement was not disclosed in the press statement.

MISC, which is 51%-owned by the national oil and gas outfit, will oversee the project management during the construction phase before taking on operationalisation and full ship management upon delivery, said PETRONAS.

Under the arrangement, the vessels will feature newer fuel-efficiency and emissions-related technologies, including XDF2.1 propulsion technology, shaft generators and onboard reliquefaction systems to manage boil-off gas — vapour formed when LNG evaporates.

PETRONAS said the deal also extends MISC’s roles in supporting the group’s LNG logistics network as the national shipping group continues to expand its gas assets and solutions portfolio.