Petronas Inks 12-yr Contract with K-Line

Malaysian national oil company Petronas’ subsidiary Petronas LNG Ltd recently signed a 12-year time charter party (TCP)  with a Japanese shipowner Kawasaki Kisen Kaisha Ltd (“K” Line) for two midsized new build LNG vessels.

According to the statement, the TCP includes an extension option for an additional 12 years. The LNG vessels had about 79,960 cubic metres each in capacity.

Petronas said this was in line with the signing of the shipbuilding agreements between ‘K’ Line and Hudong-Zhonghua Shipbuilding Co Ltd for the construction of the vessels in Shanghai, China.

Petronas executive vice president and CEO of gas and new energy, Adnan Zainal Abidin said the procurement and chartering of these vessels were concluded within four months, thus setting a new standard in the industry.

They are expected to be delivered in the second quarter of 2022.

These are the first long-term Time Charter contracts between Petronas and “K” Line with new-building vessels. These two vessels will be equipped with X-DF engine.

Petronas, a fully integrated oil and gas company and also a global LNG producer with over 35 years of experience, provides an uninterrupted supply of LNG to more than 25 countries around the world.

Petronas is also the first global energy player to introduce the floating LNG concept in 2016. These two newbuilding vessels will engage in transportation of LNG from Malaysia (Bintulu) to Shenergy (Group) Co., Ltd., China, from 2022.

Since the delivery of S.S. “Bishu Maru” in 1983, the first LNG carrier owned by any Japanese shipping company, “K” Line has been establishing safety/expertise on LNG transportation and developing its worldwide network over the past 37 years.

“K” Line will further expand stable earning structure from long-term contract and contribute to stable supply of energy.