PETRONAS Signs A 12-year Time Charter Party For Two New Build LNG Vessels

PETRONAS through its subsidiary, PETRONAS LNG Ltd. recently signed a 12-year Time Charter Party (TCP), with an option to extend for another 12 years, with a renowned Japanese shipowner, Kawasaki Kisen Kaisha, Ltd (“K” Line) for two mid-sized new build LNG vessels of approximately 79,960 cubic metres each in capacity.

During the signing ceremony, PETRONAS Executive Vice President and Chief Executive Officer of Gas & New Energy, Adnan Zainal Abidin commended the pace of the procurement and chartering of these vessels which were concluded within four months, thus setting a new standard in the industry.

This long term TCP is in line with the signing of the shipbuilding agreements between “K” Line and Hudong-Zhonghua Shipbuilding (Group) Co. Ltd. whereby these vessels will be constructed in Shanghai, China, and expected to be delivered in the second quarter of 2022. These identical vessels will be dedicated to serving PETRONAS’ long term LNG delivery commitment to Shanghai under the new LNG supply agreement with Shenergy Group Company Limited (Shenergy).

The vessels known as Wuhaogou-Max (W-Max) are specifically built to fully optimise the delivery of LNG cargoes to Shenergy’s Wuhaogou LNG terminal in Shanghai. The vessels are capable of delivering fully laden cargoes within the channel’s permissible limits without exceeding the port’s draught limitation.

The signing of the respective agreements between PLL and “K” Line for the TCP, together with the shipbuilding contracts between “K” Line, Hudong-Zhonghua Shipbuilding (Group) Co., Ltd. and China Shipbuilding Trading Co., Ltd. were witnessed by PETRONAS President and Group Chief Executive Officer, Tan Sri Wan Zulkiflee Wan Ariffin.