Petronas launches hunt for two bespoke-size LNG carriers

Malaysia’s Petronas is on the hunt for two midsize LNG carrier newbuildings as it expands its transportation options and offering on the product.

LNG industry players close to the company said shipowners had received a request for proposals from Petronas for two LNG carriers of around 80,000 cbm.

They said bids from shipowners are due in soon.

One commented that Petronas’ shipping arm, MISC, should be the lead contender for this business but added that one of Japan’s big three shipowners — NYK, MOL and K Line — has also been showing a keen interest.

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It is unclear how Petronas plans to deploy the vessels.

The company has been using existing small-scale LNG tonnage to carry out breakbulk ship-to-ship transfer operations in Brunei Bay, east Malaysia. But it may also be looking at trading cargoes in the region.

Asian buyers

Ahmad Adly Alias, Petronas vice president of LNG marketing and trading, has previously spoken about how new LNG buyers in Asia may prefer to grow their LNG business gradually by importing smaller parcels of LNG, moving away from the traditional mode of long-term supplies over a specific term.

Last year, MISC bought two slightly smaller LNG carriers — the 65,000-cbm LNG Portovenere (built 1997) and LNG Lerici (built 1998) — on the basis of charter-back deals to their owner, ENI Group of Italy. Both vessels have undergone extensive upgrades to their containment systems.

Petronas’ enquiry for midsize LNG carriers follows a similar one circulated by Singapore’s Pavilion Energy in the last quarter.

Pavilion asked for offers on ships of around 30,000 cbm and 80,000 cbm in connection with transshipment requirements.

Those following this business said the company is looking for shipowners who are interested in building the vessels and chartering them back to Pavilion for a relatively short-term period.

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There are just five existing LNG carriers in the 74,000-cbm to 89,000-cbm size range.

Bespoke design

Three of these were specifically built for trans-Mediterranean trades.

The two largest vessels — the 89,000-cbm Arctic Spirit and Polar Spirit (both built 1994) — are now in Teekay LNG’s fleet and have been used by Petronas in its breakbulk business.

Last year, it emerged that Chinese trader Jovo Group had contracted two 80,000-cbm LNG carriers at Jiangnan Shipyard in China. However, it remains unclear how firm these orders are as they do not show up on newbuilding databases.

When they were ordered, the so-called Sino-Flex vessels were scheduled for 2021 delivery dates.