Petronas signs long-term time charter with Japan shipbuilder K Line

Signatories and witnesses from Petronas LNG, K Line and Hudong-Zhonghua Shipbuilding after the Time Charter Party and Shipbuilding Contract signing ceremony, which was held at the Malaysian Petroleum Club, Petronas Twin Towers. (Photo: Petronas)

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KUALA LUMPUR (Feb 17): Petroliam Nasional Bhd’s (Petronas) subsidiary Petronas LNG Ltd has signed a 12-year time charter party (TCP) with Japanese shipowner Kawasaki Kisen Kaisha Ltd (K Line) for two mid-sized new build liquefied natural gas (LNG) vessels.

The long-term TCP for the two vessels of approximately 79,960 cubic metres each in capacity comes with an option to extend for another 12 years.

In a statement, Petronas said the TCP is in line with the signing of the shipbuilding agreements between K Line and Hudong-Zhonghua Shipbuilding (Group) Co Ltd, whereby these vessels will be constructed in Shanghai, China, and expected to be delivered in the second quarter of 2022.

“These identical vessels will be dedicated to serving Petronas’ long-term LNG delivery commitment to Shanghai under the new LNG supply agreement with Shenergy Group Company Ltd (Shenergy),” it said.

During the signing ceremony, Petronas executive vice president and chief executive officer of gas and new energy Adnan Zainal Abidin commended the pace of the procurement and chartering of these vessels, which were concluded within four months, thus setting a new standard in the industry.

The vessels, known as Wuhaogou-Max (W-Max), are specifically built to fully optimise the delivery of LNG cargoes to Shenergy’s Wuhaogou LNG terminal in Shanghai.

According to Petronas, the vessels are capable of delivering fully laden cargoes within the channel’s permissible limits without exceeding the port’s draught limitation.

The signing of the respective agreements between Petronas LNG and K Line for the TCP, together with the shipbuilding contracts involving K Line, Hudong-Zhonghua Shipbuilding and China Shipbuilding Trading Co Ltd were witnessed by Petronas president and group chief executive officer Tan Sri Wan Zulkiflee Wan Ariffin.