MISC consortium wins LNG charter contract from QatarEnergy

PETALING JAYA: MISC Bhd, via a consortium that includes Japanese and Chinese companies, has won long-term time charter contracts from Qatar’s state-owned energy company for seven newbuild liquefied natural gas (LNG) carriers.

The seven 174,000 cubic metres newbuilding vessels will serve QatarEnergy – one of the world’s largest LNG producers – in transporting LNG to various countries.

Expected to be delivered in 2025, the seven carriers will be built by Hyundai Heavy Industries Co Ltd.

In a filing with the stock exchange yesterday, MISC said its consortium consists of Nippon Yusen Kabushiki Kaisha, Kawasaki Kisen Kaisha Ltd and China LNG Shipping (Holdings) Ltd.

MISC, which is one of the world’s largest single owner-operator of LNG tankers, said each consortium member will have an equal equity interest of 25% in each LNG vessel.

“MISC will enter into shareholders’ agreements with the consortium through its wholly-owned subsidiary known as Portovenere and Lerici (Labuan) Pte Ltd.

“Joint-venture companies will be formed to manage the commercial operations of the Lng carriers while eagle star ship management GAS (S) Pte Ltd, an indirect wholly-owned subsidiary of MISC, will provide ship management services for part of this project,” MISC said in a filing with Bursa Malaysia yesterday.

In a separate statement, MISC’S outgoing president and chief executive officer Datuk Yee Yang Chien said the multinational collaboration via the consortium combined “decades of experience, knowledge and expertise” in the transportation of LNG”.

The latest contract from QatarEnergy adds on to several charter contracts MISC has won in the past years. MISC shares rose seven sen to RM7.13 on the news yesterday, giving it a market valuation of Rm31.83bil.