MISC wins RM558mil contracts to supply LNG vessels
PETALING JAYA: MISC Bhd has won two contracts worth US$133mil (RM558mil) to supply two liquified natural gas (LNG) vessels to LNG Shipping S.p.A (LSS).
The energy-related shipping group told Bursa Malaysia yesterday that both vessels, LNG Portovenere and LNG Lerici, will be chartered by LSS for a period of five years.
“The charter for LNG Portovenere is expected to commence in December 2018 whereas the charter for LNG Lerici is expected to start by January 2019,” said the company in the stock exchange filing.
The two LNG carriers will be used to transport LNG cargoes to meet the LSS’ trading needs in international waters. Both vessels have a capacity of 65,000 cubic metres.
Currently, both LNG Portovenere and LNG Lerici are trading in the Asia Pacific region. According to MISC, the two contracts were pursuant to a memorandum of agreement between LSS and MISC, which resulted in MISC acquiring ownership of the vessels from LSS.
The company also said that the contracts were not expected to have any material impact to its earnings per share, gearing and net assets per share for the financial year ending Dec 31, 2018.
In a separate media statement, MISC president and group CEO Yee Yang Chien said that the two time charter contracts and the acquisition of both vessels will strengthen the shipping group’s fleet as well as its capacity to support the LNG demand worldwide.
“This business opportunity supports the MISC2020 strategy for our LNG business segment in expanding our portfolio of customers.
“In view of the evolving marketplace, there is certainly potential for us to diversify our solutions by including mid-scale and small-scale LNG transportation especially with the growing spot market demand for LNG trading and this will enable MISC to develop our capability in the trading of multiple-size vessels as well as our reach to other global locations.
“These mid-sized LNG carriers also present unique opportunities that supports MISC’s efforts to venture into non-conventional LNG shipping solutions, whereby upon expiry of the charter party, these vessels will have the potential to be converted into mid-sized floating storage regasification unit, floating storage unit or other alternative LNG floating solution projects,” stated Yee.