Malaysia's MISC Inks $133mn Time Charter Deals
Malaysian shipping firm MISC, a unit of state-owned Petronas, has secured two-time charter contracts with a unit of Italy’s Eni for two LNG carriers, it said November 27.
LNG Shipping (LSS), a wholly owned subsidiary of Eni, and MISC have signed five-year time charter agreements, for LNG carriers LNG Portovenere and LNG Lerici. The estimated combined contract value is $133mn. Both vessels have a capacity of 65,000 m3.
"The time charter contracts are pursuant to a sale agreement between LSS and MISC, which resulted in MISC acquiring ownership of the two vessels from LSS," MISC. The five-year charter period will tentatively commence in December 2018 for LNG Portovenere and January 2019 for LNG Lerici.
"This business opportunity supports the MISC2020 strategy for our LNG business segment in expanding our portfolio of customers. In view of the evolving marketplace, there is certainly potential for us to diversify our solutions by including mid-scale and small-scale LNG transportation, especially with the growing spot market demand for LNG trading and this will enable MISC to develop our capability in the trading of multiple-size vessels as well as our reach to other global locations," MISC president Yee Yang Chien said.
Yee added, "These mid-sized LNG carriers also present unique opportunities that supports MISC’s efforts to venture into non-conventional LNG shipping solutions, whereby upon expiry of the charter party, these vessels will have the potential to be converted into mid-sized FSRUs, FSUs, or other alternative LNG floating solution projects."
LNG Portovenere and LNG Lerici are currently trading in the Asia Pacific region and are capable of worldwide trading, said MISC.