MALAYSIA International Shipping Corporation (MISC) Berhad, one of the world’s renowned liquefied natural gas (LNG) transporters has entered into a joint venture (JV) agreement with Petromin PNG Shipping Limited a wholly-owned subsidiary of Petromin PNG Holdings Limited.
MISC is a subsidy of Petronas, the Malaysian government owned oil and gas company.
Petromin was created to hold the State’s oil, gas and mineral assets and is entrusted to maximise indigenous ownership and revenue gains in the mineral and petroleum sectors of Papua New Guinea.
MISC in a statement on its website said it was selected by Petromin as its JV partner after going through a competitive bidding process where one other international LNG shipping company also participated.
The purpose of the agreement is to incorporate a joint venture company (JVC) to provide LNG transportation solutions for LNG projects in PNG and to secure shipping contracts to support other general shipping requirements in the country.
The agreement was signed last week at the Malaysian Petroleum Club in Kuala Lumpur by MISC’s Amir Hamzah Azizan, president and chief executive officer, while Joshua Kalinoe, Petromin managing director, signed for the PNG Government’s mineral and oil company.
The ceremony was witnessed by Petromin chairman Brown Bai.
The JVC, Western Pacific Shipping Ltd, which is to be incorporated in Bermuda Islands, will be 60% owned by MISC, with Petromin PNG Shipping Limited holding the remaining 40%.
The JV establishment is also aimed at contributing to the export and import activities of PNG by providing world-class shipping capabilities, which eventually will be owned by Papua New Guineans, and modelled along MISC’s 40 years of extensive shipping experience.
As one of the leading players in LNG shipping, with a total of 29 wholly owned and operated LNG carriers, this joint venture signals MISC’s entry into PNG’s oil and gas transportation industry. Through the joint venture, MISC will not only be expanding its energy related transportation business but will also contribute to Papua New Guinea’s capacity building requirements in the shipping business.
The joint venture will also enhance the growth prospects of both companies in the LNG industry, especially in the Asia Pacific region. With the development of two and possibly three LNG projects, the Papua New Guinea LNG industry is estimated to grow to 14.6 million tonnes per annum by 2015.