Kuala Lumpur-based MISC Berhad is looking to shed one of its older LNG carriers, circulating invitations for expressions of interest among brokers.
The Malaysian shipowner told TradeWinds that it was "exploring options" for the 130,400-cbm Puteri Firus (built 1997), "which could possibly include putting the vessel up for sale".
Broking sources familiar with the invitation said that if MISC decided to sell the ship, either for further trading or for scrap, it would likely be sold via tender on an "as-is" basis in Labuan.
The Chantiers de l'Atlantique-built vessel is not the oldest ship in MISC’s LNG carrier fleet, but it has not traded since being put into lay-up in Brunei Bay in 2017.
It is unclear why MISC idled the ship, yet has kept four identical but slightly older ships in active service.
LNG sector observers believe that the ship was stored in Brunei Bay in anticipation of being used for possible storage or conversion projects, something that MISC has done with several of its older LNG carriers in the past.
VesselsValue pegs an $18m trading value on the Puteri Firus, but brokers said that finding a trading buyer for a steam-turbine powered LNG carrier laid up for that long might prove difficult.
Green scrapping an option
MISC said selling the ship for recycling was one of the options it might consider, but such a move would only be undertaken in a sustainable manner.
"We remain committed to our long-term sustainability agenda which includes our support and belief for the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships," the company said.
VesselsValue estimates the Puteri Firus has a scrap value of $14.7m based on a price of $500 per ldt.
MISC last sent an LNG carrier for recycling in October 2018, when the 130,000-cbm Tenaga Lima (built 1981) was sold to Bangladeshi shipbreakers.
LNG carrier scrap sales are notoriously rare, but last year saw six ships sold for demolition.
No demolition deals have been reported so far this year although there are widespread market expectations that scrapping levels will exceed that of 2020.
As TradeWinds has previously reported, more than 50 LNG newbuildings are set to be delivered this year, some of which were contracted speculatively and remain open for business.
In addition, the market is set to see more than 200 steam-turbine vessels redelivered from long-term time charters.
