MISC Orders LNG Carriers

Malaysian International Shipping Corp. is fortifying its position in the fast growing market for the carriage of Liquefied Natural Gas (LNG), today reportedly converting an option for two liquefied natural gas ships into firm orders, bringing total oustanding orders to six. MISC is already one of the world's largest LNG tanker operators, and it also also plans to buy four 6,800-TEU, post-Panamax containerships for delivery in 2002-2003. "We have ordered four new LNG ships...and two more ships are on option...(which) should be exercised by the end of this year," a company official reported. MISC has a fleet of 13 carriers with total lifting capacity of 1.35 million cu. m. They are part of MISC's total fleet of 124 ships. The LNG sector is seen as a lucrative business, commanding a profit margin of at least 45 percent, analysts said. About 80 percent of MISC's revenue comes from the long-term charter contracts with Petronas for LNG transport. Last year, Petronas signed a preliminary agreement to supply 2.6 million tons of gas from the MLNG Tiga plant to Enron Corp's power plant project in India, which will require two LNG carriers. MISC will be transporting the LNG.