Regional LNG: Malaysia's MISC to increase LNG fleet to 28 by 2008: Report
Thursday, August 12 2004 - 11:29 AM WIB
"We have new tankers that are on order, some in the process of being constructed," MISC Chairman Hassan Marican told reporters after the company's annual shareholders' meeting.
"We will end up with 28 LNG tankers by 2008."
Analysts said each LNG tanker would cost an average of $125 million to $150 million.
MISC, 62 percent-owned by state oil and gas firm Petronas, currently owns and operates 17 tankers with a combined capacity of 1.9 million cubic metres -- just over 10 percent of total world capacity. It would take delivery of its 18th LNG tanker next month, company officials said. Of the remaining 10 due for delivery by 2008, five would be built in Japan and five in South Korea, they said. They gave no further details.
LNG carriers have benefited from strong demand, driven by energy-guzzling China and India, and falling gas output in the United States and Europe.
MISC currently has orders with Japan's Mitsubishi Heavy Industries and Mitsui Engineering and Shipbuilding, and South Korea's Samsung Heavy Industries. "These new builds are not for speculative trading. They are meant for specific charters," said Hassan, who is also Chief Executive Officer of Petronas.
Britain's biggest gas supplier, Centrica, said on Wednesday it had contracted to buy about three billion cubic metres of LNG a year, worth an estimated four billion pounds ($7.32 billion), over 15 years from Petronas.
Deliveries would start in 2007 or 2008 and the contract would be based on UK market prices.
MISC caters for most of Petronas' shipping needs, but Hassan said the firm was looking to increase its non-Petronas charters.
Last year, it signed a three-year agreement to transport LNG for a Swiss unit of U.S.-based Cheniere Energy and a deal with French gas utility Gaz de France. (*)