This article first appeared in The Edge Financial Daily on October 3, 2019

KUALA LUMPUR: MISC Bhd announced yesterday that its collaboration with Avenir LNG Ltd has secured a time charter party (TCP) from Petroliam Nasional Bhd’s (Petronas) subsidiary Petronas LNG Sdn Bhd (PLSB), worth US$28 million (RM117 million).

In a filing with Bursa Malaysia yesterday, MISC said the three-year TCP is for the supply of one liquefied natural gas (LNG) bunker vessel, for operations primarily in Malaysian and Singapore waters.

“MISC and Avenir have agreed on the principal terms for the collaboration and will enter into a shareholders’ agreement. A joint-venture company, Future Horizon (L) Pte Ltd, will be formed to manage the commercial operations of the LNG bunker vessel,” MISC said, adding that the ship management of the vessel will be provided by its indirect, wholly-owned Eaglestar Shipmanagement (L) Pte Ltd.

MISC said it would own 51% in Future Horizon, while the remaining 49% will be held by Avenir. Charter for the LNG bunker vessel, which is expected to start by the first quarter of 2020.

MISC is 62.67%-owned by Petronas, MISC’s annual report shows.

The announcement came following a statement issued by Avenir on Tuesday that Petronas had awarded a 7,500 cubic meter LNG carrier time charter party to a joint venture involving MISC and Avenir.

“The vessel will provide bunkering to LNG fuelled vessels across Malaysia in addition to transport services for small-scale terminals in the region.

“In view of their complementary global portfolios, Avenir and PLSB will offer multi-modal LNG bunkering solutions and provide further support for LNG fuelled vessels. Additionally, both companies will collaborate on the development of selected small-scale LNG projects,” Avenir said.

MISC shares closed five sen lower at RM7.84 yesterday, giving the group a market capitalisation of about RM35 billion. The stock, which has been on a steady climb over the past year, is up over 33% from a year ago.