KUALA LUMPUR: MISC Bhd has accepted a letter of award (LOA) from PETRONAS LNG Ltd for the long-term charter of five new liquefied natural gas (LNG) carriers, with operations expected to commence in 2030.

In a filing with Bursa Malaysia, MISC said the LOA, accepted on Oct 7, sets out the principal terms and conditions for the definitive time charter agreements.

“The project will be for a firm charter period of 20 years for each LNG carrier, with commencement expected in 2030.

“MISC will provide the LNG shipping services through its wholly owned subsidiaries,” it said.

In connection with the project, MISC will enter into shipbuilding contracts with Hudong-Zhonghua Shipbuilding (Group) Co Ltd for the construction of five newbuild LNG carriers for the project.

The company said the project was intended to support PETRONAS' anticipated LNG production growth while contributing to MISC's fleet renewal programme through the introduction of vessels designed to reduce greenhouse gas emissions.

PETRONAS LNG is an indirect wholly-owned subsidiary of Petroliam Nasional Bhd (Petronas), which is also the holding company of MISC.

MISC said the project was not expected to have any material impact on its earnings per share, gearing or net assets per share for the financial year ending Dec 31, 2026.

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