Petronas’ majority-owned shipping and marine subsidiary MISC has been lined up for a contract worth up to $213.7 million to supply, operate and maintain a converted liquefied natural gas (LNG) floating storage unit (FSU) for the Pengerang LNG (Two) (PLNG2SB) import project in Malaysia.
MISC on Tuesday confirmed it had signed a binding heads of agreement for the LNG FSU. The Malaysian contractor intends to convert one of its Puteri Satu class LNG carriers, the Puteri Delima Satu, which completed its long-term charter earlier this year and is currently laid up, for this contract.
The LNG FSU is to be supplied on a 20-year agreement from the expected operational start-up 2025, with the potential to extend if PLNG2SB and MISC agree.
MISC cautioned that the risk factors affecting the agreement include changes in the economic, political and regulatory environment, and operational risks, which are adequately mitigated by the terms and conditions of the agreement. The company added that its LNG FSU deal is not expected to have material impact to its earnings per share, gearing and net assets per share for the financial year ending 31 December.
PLNG2SB itself is a 65% owned subsidiary of Petronas Gas, and its main activities are construction, owning, managing and operating the LNG regasification terminal and ancillary activities at Pengerang, Johor in southern Malaysia.
The LNG receiving and regas facility is operated by Petronas Gas' gas transmission and regasification (GTR) division.
The Pengerang terminal supplies regasified volumes to to the Refinery and Petrochemical Integrated Development (RAPID) Complex, Pengerang Cogeneration Plant and other consumers via Malaysia's Peninsular Gas Utilisation grid.