1.0 INTRODUCTION
The Board of Directors of MISC Berhad ("MISC" or the "Company") wishes to announce that MISC has received a Letter of Award ("LOA") from Malaysia LNG Sdn. Bhd. ("MLNG") for a long-term time charter of a newbuild 18,700 cubic metres ("cbm") LNG carrier ("LNGC") (the "Project"). The LOA sets out the principal terms and conditions that will form the basis of the definitive Time Charter Party ("TCP") for the LNGC. In connection with the Project, MISC has entered into a shipbuilding contract on 30 July 2026 with Hudong-Zhonghua Shipbuilding (Group) Co., Ltd. ("HZ") for the construction of the newbuild 18,700 cbm LNGC.
2.0 DETAILS OF THE PROJECT
2.1 The Project will be for a firm charter period of ten (10) years, with commencement expected in 2028. MISC, through its subsidiary, will provide the LNG shipping services to MLNG.
2.2 The Project is strategically important as it supports PETRONAS' continued LNG supply to Sendai City, Japan, reinforcing a long-standing partnership of nearly 30 years and ensuring the reliable delivery of LNG to meet the customer's long-term energy needs. In addition, the Project supports MISC's LNG carrier fleet rejuvenation programme through the deployment of a modern, fuel-efficient vessel, enhancing operational efficiency while reducing greenhouse gas emissions and overall emissions intensity.
2.3 The risks relating to the time charter include commercial, project execution and operational risks, which are inherent in the industry. MISC will take appropriate measures to mitigate the risks through established controls, experience and operational expertise.
2.4 The Project is not subject to the approval of the shareholders of MISC nor any governmental authorities.
3.0 INFORMATION ON THE PARTIES
3.1 MLNG operates the PETRONAS LNG Complex in Bintulu, Sarawak, which is one of the world's largest LNG production facilities on a single site, with a production capacity of nearly 30 million tonnes per annum. It serves as the cornerstone of PETRONAS' supply reliability.
3.2 HZ is one of the largest shipbuilding enterprises under China State Shipbuilding Corporation Limited, with profound expertise in R&D (research and development), engineering and construction of ships ranging from large LNGCs, large/ultra-large container ships, chemical tankers, heavy-lift ships to military ships.
4.0 EFFECTS OF THE PROJECT
The Project does not have any effect on the share capital and shareholding structure of substantial shareholders of MISC and is not expected to have any material impact on the financial position of the MISC group of companies ("MISC Group"), including earnings per share, gearing, and net assets per share of the MISC Group for the financial year ending 31 December 2026.
5.0 INTERESTS OF DIRECTORS AND MAJOR SHAREHOLDERS AND/OR PERSONS CONNECTED TO THEM
Save for all the Non-Independent Non-Executive Directors and Executive Director of MISC ("Interested Directors") as well as PETRONAS (being a major shareholder of MISC and MLNG), none of the directors and/or major shareholders of MISC and/or persons connected with the directors and/or major shareholders have any interest, direct or indirect, in the Project. Datuk Adif Zulkifli, a Non-Independent Non-Executive Director, is the Chairman of the Board of Directors of MLNG.
6.0 DIRECTORS' STATEMENT
The Board of Directors (save for the Interested Directors), having considered all aspects of the Project, is of the view that the Project is in the best interest of MISC, fair, reasonable and on normal commercial terms and not detrimental to the minority shareholders of MISC.
This announcement is dated 31 July 2026.