MISC and PETRONAS Gas subsidiary join forces for LNG floating storage unit project
Malaysian shipping company MISC Berhad (MISC) has signed binding heads of agreement (HOA) with Pengerang LNG, a subsidiary of PETRONAS Gas Berhad (PGB), for an LNG floating storage unit (FSU) to be deployed at the PETRONAS LNG regasification terminal Pengerang in Johor, Malaysia.
Under the agreement for the supply, operation, and maintenance of the unit, MISC’s LNG carrier Puteri Delima Satu will be converted into an FSU.
The FSU is designed to receive shore power to reduce emissions while improving operational efficiency and is set to become commercially operational by the second quarter of 2025 under a 20-year contract term, with provisions for extension based on mutual agreement.
This project is a continuation of the collaboration between MISC and PGB in 2012 that brought about the deployment of FSU Tenaga Satu and FSU Tenaga Empat at the LNG regasification terminal Sungai Udang, Melaka.
Hazrin Hasan, MISC’s Vice President of Gas Assets & Solutions (GAS) said: “This partnership represents more than just a new chapter in our collaboration; it embodies the essence of progress and shared commitment between the two parties.
“By repurposing and redeploying our existing assets and drawing on our experience from operating FSU Tenaga Satu and FSU Tenaga Empat, we are not only creating a revenue-generating opportunity but also driving better shareholder returns. We thank PGB and PLNG2SB for their trust and we remain committed together with PETRONAS in supporting the national agenda for energy transition in Malaysia.”