MISC Consortium To Charter Newbuild LCO2 Carrier For Northern Lights Project

KUALA LUMPUR, Jan 30 (Bernama) -- MISC Bhd’s consortium with Kawasaki Kisen Kaisha, Ltd (K Line) has executed a long-term time charter agreement with Northern Lights JV DA for a newbuild 12,000-cubic metre liquefied carbon dioxide (LCO2) carrier. 

In a filing with Bursa Malaysia, MISC said the agreement will be for a firm charter period of ten years.

It added that the agreement for a second newbuild LCO2 carrier is expected to be awarded in April 2026 (collectively, New LCO2 Carriers).

MISC said the charter supports part of the Phase 2 requirements of Norway’s Northern Lights Project, which is part of the Longship, the Norwegian Government’s full-scale carbon capture and storage (CCS) project, for cross-border transportation of carbon dioxide from customers in Europe to permanent offshore storage in Norway.

The New LCO2 Carriers are to be delivered between the second half of 2028 and the first half of 2029.

“The charter marks MISC’s strategic entry into the commercial CCS sector and LCO2 shipping, aligning with the group’s ambition to expand into low-carbon and transition-enabling maritime solutions,” the company said.

A joint-venture company, to be owned in equal shares by MISC and K Line, will be established for the purpose of owning and chartering the New LCO2 Carriers.

Northern Lights JV DA, a registered General Partnership with Shared Liability, was established in March 2021 as a joint-venture between Equinor Refining Norway AS, TotalEnergies EP Norge AS, and A/S Norske Shell.

It is responsible for CO2 transport and storage for the Northern Lights Project.

-- BERNAMA