MISC gets five LNG carrier newbuilding deals back from Petronas

MISC said in a stock market release that its major shareholder Petronas had undertaken a novation agreement for the construction and delivery of the newbuilding of the vessels. Petronas had previously said it would directly source LNG carrier newbuildings to cut costs, raising concern for the fate of MISC, which is highly dependent on its parent for work.

“The newbuild LNG carriers are expected to be delivered to MISC from September 2016 to December 2017. The transaction will involve an expenditure of approximately $1.1bn” it said.

Concurrently, MISC said Petronas had also agreed to extend the charter of five refurbished Puteri Class LNG carriers on a time charter basis for another 10 years for each refurbished LNG Carrier. It said the respective charters will be from September 2015 to September 2017.