November 2, 2023 [Rigzone]- Kuala Lumpur-based MISC Berhad has entered into a binding heads of agreement (HOA) with Pengerang LNG (Two) Sdn. Bhd. (PLNG2SB), a subsidiary of Petronas Gas Berhad (PGB), for the supply, operation, and maintenance of a liquefied natural gas (LNG) floating storage unit (FSU).
The FSU will be deployed at the Petronas LNG Regasification Terminal Pengerang (RGTP) in Johor, Malaysia, MISC said in a news release Tuesday. MISC will convert its LNG carrier Puteri Delima Satu into an FSU dedicated to the project. The FSU is set to become commercially operational by the second quarter of 2025 under a 20-year contract term, with provisions for extension based on mutual agreement, MISC said, adding that the vessel is designed to receive shore power to reduce emissions.
The project is a continuation of the collaboration between MISC and PGB in 2012 for the deployment of FSU Tenaga Satu and FSU Tenaga Empat at the LNG Regasification Terminal Sungai Udang in Melaka, Malaysia.
“This partnership represents more than just a new chapter in our collaboration; it embodies the essence of progress and shared commitment between the two parties”, MISC Vice President of Gas Assets and Solutions Hazrin Hasan said. “By repurposing and redeploying our existing assets and drawing on our experience from operating FSU Tenaga Satu and FSU Tenaga Empat, we are not only creating a revenue-generating opportunity but also driving better shareholder returns. We thank PGB and PLNG2SB for their trust and we remain committed together with Petronas in supporting the national agenda for energy transition in Malaysia”.
Partnership with Nissen Kaiun
Meanwhile, MISC signed a new partnership agreement with Japanese ship owner Nissen Kaiun Co., Ltd. for the sale and charter of two of its existing LNG carriers.
Under the terms of the transaction, MISC will transfer ownership of the LNG carriers to Nissen Kaiun, and simultaneously enter into a charter agreement with Eaglestar and Synergy Marine as the ship managers, according to an earlier news release. MISC expects the first of the two vessels to be delivered to Nissen Kaiun in the fourth quarter.
“This strategic transaction is a testament to MISC’s commitment to enhancing our financial flexibility and our ability to adapt to evolving industry dynamics”, MISC President and Group CEO Rajalingam Subramaniam said. “This is part of our MISC 2030 business strategy to unlock value, maximizing returns from our GAS [Gas Assets & Solutions] portfolio, whilst growing commercial and operational scale for our shipping segment. I am happy that we are able to enter into this partnership with Nissen Kaiun and look forward to growing this collaboration for current and future business potentials. My thanks to the team members in the MISC Group including Eaglestar, Nissen Kaiun, and Synergy Marine for making this partnership possible within a short period of time”.
“We are very proud and excited to start our first time-charter business of LNG carriers for MISC”, Nissen Kaiun President Katsuya Abe said. “With support from Synergy Group and Eaglestar, we will strive for the safe operation of LNG carriers. Following this memorable first step, we hope to expand the relationship with MISC in LNG carriers and other segments too”.
MISC’s fleet consists of more than 100 owned and in-chartered vessels consisting of LNG and ethane carriers, petroleum and product vessels, floating production systems as well as LNG FSUs with a combined deadweight tonnage (dwt) capacity of more than 13 million metric tons.
PGB is Malaysia’s leading gas and infrastructure company with core businesses in gas processing, gas transportation, regasification, and utilities. Its subsidiary PLNG2SB owns a regasification facility in Pengerang, Johor, which receives and stores LNG for delivery to consumers via the Peninsular Gas Utilization national grid.
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