PETRONAS Gas to make one-off payment of US$233.6mil for FSUs' capex hire fees

KUALA LUMPUR: Petronas Gas Bhd will make a one-off cash settlement of US$233.6mil (RM1.07bil) for the prepayment of remaining capex hire fees under the time charter parties of two floating storage units (FSU) at LNG Regasification Terminal Sungai Udang.

In a filing with Bursa Malaysia, PETRONAS Gas said its wholly-owned subsidiary, Regas Terminal (Sg Udang) Sdn Bhd came into agreement with MISC Bhd's Gas Asia Terminal (L) Pte Ltd for the early settlement of the residual contract value payable for FSU Tenaga Satu and FSU Tenaga Empat.

According to PETRONAS Gas, the FSUs will continue to be employed by Regas Terminal until the end of the contracted charter period and the operating portion of the time charter parties will remain unaffected.

It said the prepayment of fees will reduce PETRONAS Gas's foreign currency risk exposure for the remainder of the time charter parties period.