LNG

Malay shipping line to co-own tankers for LNG Canada

MISC Berhad, the Malaysian shipping line with an LNG fleet of more than 30 vessels, has agreed with Nippon Yusen Kabushiki Kaisha (NYK) and Mitsubishi Corp to co-own two new-build LNG carriers that will mainly serve the LNG Canada project. Both LNG carriers would have a capacity of 174,000 cubic metres and are currently being built by the Hyundai Samho Heavy Industries shipyard in South Korea. The carriers will serve Diamond Gas, an LNG marketing arm of Mitsubishi, under 18-year charter contracts.MISC's main client for charters is Petronas, a shareholder in LNG Canada along with Mitsubishi.The LNG Canada project, led by Royal Dutch Shell, has an estimated cost of C$40 billion (US$31.2 billion), making it the biggest ever energy investment in Canada. The project engineering contractors are Fluor and JGC. The first phase of the project will be built on a 400 hectares site in the industrial area of Kitimat, located about 650 kilometres north of Vancouver. It will comprise two LNG liquefaction Trains, each with 7 mtpa of output and two LNG storage tanks, each of 225,000 cubic metres capacity in addition to other facilities. The plant could be expanded at a later stage.