MISC expands into carbon transport with second LCO2 carrier deal for Northern Lights CCS project
businesstoday.com.myMISC Bhd secured a second long-term charter contract for a new liquefied carbon dioxide (LCO2) carrier with Northern Lights JV DA, a European CCS infrastructure developer backed by Shell, Equinor, and TotalEnergies. The 10-year deal covers a 12,000 cubic metre vessel jointly owned by MISC and NLJV, marking a strategic shift beyond fossil fuel shipping into the growing carbon management value chain. MBSB Research estimates the vessel could generate RM35 million to RM50 million in annual revenue once operational, though that represents less than 1.5% of MISC's group earnings given its RM12.3 billion order book. Capital expenditure will be spread over the next two to three years during construction. The research house maintained a BUY call with a target price of RM9.22. The deal positions MISC to build expertise in LCO2 transportation ahead of competitors as global CCS infrastructure expands. Risks tied to carbon capture facilities, storage infrastructure, and European carbon pricing are partly offset by NLJV's strong shareholder backing and low counterparty risk.