TNB said in a statement that the contracts -- 10 years for secondhand vessel and 15 years for newbuilding vessel -- were inked with PNSL Bhd, Malaysian Bulk Carriers Bhd, Duta Marine Sdn Bhd and Prima Shipping Sdn Bhd,
Two of the consecutive voyage charter (CVC) contracts are with PNSL Bhd, worth US$99mil (RM388.4mil) and US$95.4mil (RM374.3mil), to transport a total of 3 million tonnes per annum (Mtpa) for a 10-year period.
The single biggest contract was given to Malaysian Bulk Carriers Bhd, valued at US$143.1mil (RM561.4mil), to carry 1.5 Mtpa for a 15-year period.
The CVC deal with Duta Marine is to ship 1.5 Mtpa over 10 years for US$100.5mil (RM394.3mil).
Prima Shipping, meanwhile, will deliver 1.5 Mtpa for US$99mil (RM388.4mil) for a 10-year period.
“The awarding of the long-term contracts of affreightment (COA) reflects TNB Fuel’s commitment in promoting and nurturing the growth of Malaysian owned shipping companies which eventually will allow them to own and/or operate Malaysian flagged vessels,” TNB said.
“Simultaneously, the long-term COA allows TNB Fuel to diversify its freight contracts’ portfolio to 60% term COA, 20% spot contract and 20% long-term COA, subject to market condition.”
The total allocated 7.5 Mtpa is less than 30% of the total shipping services required by TNB Fuel in 2016 (27 Mtpa). (TNB Fuel is the nominated coal and fuel supplier to TNB and independent power producers having power purchase agreements with TNB.)
“By 2019 when the coal requirement is anticipated to be around 40 Mtpa, the long-term COA will contribute to about 18.75% of the total shipping services,” the utility said.
The long-term COA is planned for shipments of coal from Indonesia since almost 60% of the coal procured by TNB Fuel is from there to the three discharge ports, namely Lekir Bulk Terminal (Manjung), Jimah Power Plant (Jimah) and Tanjung Bin Power Plant (Tanjung Bin).
TNB shares shed 10 sen to close at RM14.40 on Tuesday, with 12.611 million shares traded.
* See also Maybulk to transport coal for TNB for RM563mil
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