KUALA LUMPUR: MISC Bhd
's consortium with Kawasaki Kisen Kaisha Ltd (K Line) has executed a long-term time charter agreement wtih Northern Lights JV DA for a new build 12,000 cubic metres liquefied carbon dioxide (LCO2) carrier.
In a filing with the stock exchange, MISC said the charter has a firm period of 10 years. A time charter agreement for a second newbuild LCO2 carrier is expected to be awarded in April 2026.
The charter supports part of the Phase 2 requirements of Norway’s Northern Lights project (part of the Longship, the Norwegian government’s full-scale carbon capture and storage project) for cross-border transportation of carbon dioxide (CO2) from customers in Europe to permanent offshore storage in Norway.
The new LCO2 carriers are to be delivered between the second half of 2028 and the first half of 2029.
"The charter marks MISC’s strategic entry into commercial carbon capture and storage (CCS) sector and LCO2 shipping, aligning with the group’s ambition to expand into low-carbon and transition-enabling maritime solutions," said MISC.
According to the filing, a joint venture company that will be equally owned by MISC and K Line shall be stablished for owning and chartering the new LCO2 carriers.
