MISC Bhd and Petronas Gas Bhd are set to benefit from the RM92 billion gas deal that parent Petroliam Nasional Bhd (Petronas) secured in China recently.
The contract, which involves Petronas supplying liquified natural gas (LNG) to Shanghai LNG Co Ltd for 25 years, will require many ships and sufficient gas to ensure uninterrupted supply.
MISC, the world's largest LNG carrier, will naturally fit the bill as the transport provider.
"This large China contract could take up to 50 ship loads per year to fill. Given that Petronas is MISC's major shareholder, it would naturally utilise MISC vessels in the transportation of the LNG," OSK Research said in a report yesterday.
Petronas, through its subsidiary Malaysia LNG Tiga Sdn Bhd, will supply 3.03 million tonnes of LNG per year from its facility in Bintulu, Sarawak. The deal marked Petronas' first entry into China.
With up to 10 Chinese LNG projects having receive tentative approvals, prospects for more LNG export contracts to China is bright, the research house said.
Out of the eight new ships that MISC has ordered, three remain uncontracted.
OSK Research is confident that the firm will secure clients for the remaining vessels with this new development.
Natural gas processor and distributor Petronas Gas, on the other hand, will be an indirect benefactor, the research house said.
The source of natural gas for Petronas' Bintulu facility becomes increasingly crucial because of the many contracts that the group has signed over the years.
Because of that, a natural gas pipeline between Kimanis and Bintulu is currently being built and will be operated by Petronas Gas.
"With the pipeline scheduled for completion in 2010, it is positioned to support further contracts with China and we remain confident that this pipeline may boost Petronas Gas value by some 10 per cent," OSK Securities said.
MISC shares closed up 5 sen at RM8.75, while Petronas Gas shares were unchanged at RM8.90 yesterday.
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