KUALA LUMPUR: MISC Bhd and Samsung Heavy Industries Co Ltd (SHI) have signed shipbuilding contracts for the construction of two new liquefied natural gas (LNG) carriers, scheduled for delivery in 2027.
Additionally, MISC has signed a letter of intent (LOI) with Petronas LNG Sdn Bhd (PLSB) for the provision of long-term LNG shipping services to PLSB and/or its subsidiaries, involving the time charter of the new LNG carriers.
At the same time, MISC and PLSB have agreed to the early termination of the time charters for three existing steam LNG carriers, namely Seri Ayu, Seri Angkasa, and Seri Begawan (Seri AAB).
They have also entered into time charters for two LNG carriers, Seri Alam and Seri Amanah (Seri AA), upon the expiry of their current charters.
MISC said it will incorporate new wholly owned subsidiaries to own the new LNGCs (SPVs).
"The SPVs will enter into time charters with Petronas LNG Ltd (PLL) for the charter of the new LNGCs for a firm period of 15 years from 2027.
"The new LNGCs 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," it noted.
According to MISC, the risk factors affecting the transactions include commercial, project execution and operational risks, which the group will take appropriate measures to mitigate.
The group believes the transactions are in MISC's best interest, fair, reasonable, and in line with normal commercial terms, without being detrimental to the interests of MISC or its minority shareholders.