MISC: MISC bags US$213.7m floating storage unit deal from Petronas Gas unit

KUALA LUMPUR: MISC Bhd has entered into a binding heads of agreement for the provision of supply, operation and maintenance of floating storage unit (FSU) with Pengerang LNG (Two) Sdn Bhd (PLNG2SB), a subsidiary of Petronas Gas Bhd (PGB), with an estimated contract value of up to US$213.7 million (RM1.01 billion).In a filing with Bursa Malaysia today, MISC said it will convert one of its Puteri Satu Class liquefied natural gas (LNG) carriers, namely Puteri Delima Satu, which completed its long-term charter in early 2023 and is currently lay-up, into the FSU."The agreement is valid for a period of 20 years from the expected operation date of 2025 and may be extended for a period to be agreed between parties," it said.MISC said this project is a continuation of the collaboration between MISC and PGB in 2012 that brought about the successful deployment of FSU Tenaga Satu and FSU Tenaga Empat at the LNG Regasification Terminal Sungai Udang, Malacca."The FSU is designed to receive shore power to reduce emissions while improving operational efficiency and is set to become commercially operational by the second quarter of 2025 under a 20-year contract term with provisions for extension based on mutual agreement," it said.MISC vice president of gas assets and solutions Hazrin Hasan said the partnership embodied the essence of progress and shared commitment between the two parties."By repurposing and re-deploying our existing assets and drawing on our experience from operating FSU Tenaga Satu and FSU Tenaga Empat, we are not only creating a revenue-generating opportunity but also driving better shareholder returns," he said. - Bernama