PETALING JAYA: Malaysia International Shipping Corp Bhd’s (MISC) contract with Northern Lights JV DA (NLJV) for a newbuild liquid carbon dioxide carrier (LCO2C)is likely to bode well for the group.
The second long-term Time Charter Party (TCP) contract that is jointly owned by MISC and NLJV will be for a firm charter period of 10 years.
MISC’s role will be maintaining the vessel and providing manpower while NLJV will cover all voyage-related costs including fuel and port fees – enabling MISC to operate under a highly stable, low-risk cost structure.
It’s worth noting that NLJV is owned by Shell, Equinor and TotalEnergies.
In a report, MBSB Research said the TCP proves the strategic confidence in MISC’s capabilities in maritime asset management.
It also is set to address the increased demand from commercial European emitters looking to decarbonise their operations.
“This LCO2C transportation project is part of MISC’s core strategy to transition from traditional fossil-fuel transporter to enablers of the green energy transition,” the research house said.
“By entering the LCO2C market earlier than the group’s peers, MISC is expected to build the infrastructure and expertise to dominate the market as the carbon management value chain matures globally.”
MBSB Research pointed out that a 12,000 cu m carrier is a mid-scale sized vessel, and historically, a vessel that size typically commands a charter rate of US$40,000 to US$50,000 daily.
