MISC, NYK and Mitsubishi to jointly own two LNG vessels

25 September 2019 (Last Updated September 25th, 2019 12:30)

MISC Berhad (MISC) has signed an agreement with Japanese firms Mitsubishi and Nippon Yusen Kabushiki Kaisha (NYK) to co-own two newbuild liquefied natural gas (LNG) vessels for the LNG Canada project.

MISC Berhad (MISC) has signed an agreement with Japanese firms Mitsubishi and Nippon Yusen Kabushiki Kaisha (NYK) to co-own two newbuild liquefied natural gas (LNG) vessels for the LNG Canada project.

Currently being built by Hyundai Samho Heavy Industries, the two LNG carriers will serve Mitsubishi’s subsidiary Diamond Gas International (DGI), according to an 18-year charter contract.

DGI manages the sales and marketing of Mitsubishi equity offtake of LNG volumes from the US and Canada and from other countries around the world.

Both LNG carriers will have the capacity of 174,000 cubic metres and will be delivered in 2021. The vessels will feature modern XDF propulsion and partial re-liquefaction facility.

MISC’s interest in the total contract value is estimated at $201.6m.

MISC president and group chief executive officer Yee Yang Chien said: “This tri-party partnership is in line with MISC’s strategy of diversifying our business ventures to support the expansion of our third-party business portfolios and further broaden our revenue sources.

“We are very pleased to enter into this maiden collaboration with Mitsubishi Corporation and at the same time extend our long-standing partnership with NYK, which dates to the times as co-owners of the Aman Class vessels.”

MISC owns a fleet of 29 LNG carriers and two floating storage units, with a combined deadweight tonnage capacity of more than 2 million.

In a separate development, NYK has placed an order for the world’s largest pure car and truck carrier (PCTC), capable of navigating oceans with LNG as the main fuel.

Scheduled to be delivered in 2020, the ship will be the first large LNG-fuelled PCTC to be constructed in Japan. The new vessel will be capable of transporting approximately 7,000 units (standard vehicle equivalent) per voyage.