During the year under review, MISC delivered a total of 408 cargoes amounting to 21.8 million tonnes of LNG for its customers, carving 9.0% of the total world LNG trade. Our track record of over 30 years for on time and reliable delivery was further reinforced when in early 2015, MISC secured a contract novation from PETRONAS for five (5) new LNG vessels together with a 15 year longterm charter contract. The first delivery is scheduled for end 2016. Orders for the Moss type vessels have already been placed with Hyundai Heavy Industries and our very own engineers a r e c u r r e n t l y mo n i t o r i n g t h e construction progress for as per requirement. This new contract will secure MISC’s income stability in the coming years. To further defend our steady income stream, we have successfully secured extensions for our Puteri Class vessels for another 10 years after the current contract expiry. We have also signed a new contract with GLNG for our Seri Bakti vessel and its operation is scheduled to commence in the third quarter of 2015. These mean our current vessels will remain employed to continue to generate recurring income for the Group. For 2015, LNG supply is expected to further increase which may not be reciprocated by demand.The uncertainty as to Japan’s policies to restart its nuclear power plants and the slower growth rate in the Far East may dampen the demand for LNG especially in this primary Asian market. It will impact the recoveries of spot rates to the desired level. As such, moving forward, we will continue to monitor the dynamics for the LNG shipping segment closely. MISC will be on the lookout for new third party contracts to further grow the business, enhance our performance and maintain our position as one of the world’s most preferred LNG carriers. p 59 MISC BERHAD - Annual Report 2014
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