This article first appeared in The Edge Financial Daily on September 25, 2019
KUALA LUMPUR: MISC Bhd, one of the world’s largest single owner/operator of liquefied natural gas (LNG) tankers, will co-own two new-build LNG vessels with Mitsubishi Corp and Nippon Yusen Kabushiki Kaisha (NYK), mainly for the LNG Canada project.
The two LNG carriers, which are currently being built by Hyundai Samho Heavy Industries, will be delivered in 2021 and will serve Mitsubishi’s wholly-owned subsidiary Diamond Gas International Pte Ltd on an 18-year charter contract.
MISC said its interest in the total contract value is estimated at US$201.6 million (RM842.69 million).
“Diamond Gas manages sales and marketing of Mitsubishi’s equity offtake of LNG volumes from the US and Canada as well as other countries around the world,” said MISC in a bourse filing yesterday.
MISC said it had signed an agreement with the two Japanese firms for the partnership to co-own the LNG carriers, each with a capacity of 174,000 cu m.
MISC president and group CEO Yee Yang Chien said the tripartite partnership is in line with the group’s strategy of diversifying its business ventures to support the expansion of its third-party business portfolio and further broaden its revenue sources.