KUALA LUMPUR (Oct 8): MISC Bhd (KL:MISC) has secured long-term charter contracts for five new liquefied natural gas (LNG) carriers from PETRONAS LNG Ltd, an indirect unit of Petroliam Nasional Bhd (PETRONAS).

Each vessel will have a firm charter period of 20 years, with operations expected to commence in 2030, the shipping group said in a Bursa Malaysia filing on Thursday. The contract value was not disclosed. The agreement was signed on Wednesday (Oct 7), with MISC to provide the shipping services through its wholly-owned subsidiaries.

“The project represents a strategic initiative to capitalise on PETRONAS’ anticipated LNG production growth, while supporting MISC’s LNG carriers rejuvenation programme through the introduction of modern, efficient vessels aimed at reducing greenhouse gas emissions and overall emission intensity,” it said.

PETRONAS is the ultimate parent of both companies, holding a 51% stake in MISC. Its Labuan-incorporated subsidiary PETRONAS LNG is involved in LNG trading, vessel chartering, and the transport and supply of LNG.

To fulfil the charters, MISC said it will enter into shipbuilding contracts with China’s Hudong-Zhonghua Shipbuilding (Group) Co Ltd for the construction of the five vessels. Hudong-Zhonghua is part of China State Shipbuilding Corporation Ltd and builds vessels including large LNG carriers, container ships and chemical tankers. 

MISC’s website showed the shipping company currently has 32 LNG carriers alongside 72 petroleum vessels, 12 FSO and FPSO assets, and six ethane carriers.

MISC said the project carries commercial, execution and operational risks inherent in the shipping industry. It would manage these through established controls, experience and operational expertise.

MISC shares closed 16 sen or 2.08% lower at RM7.54 on Thursday, giving the group a market capitalisation of RM33.7 billion. The stock is down 2.08% this year.