KUALA LUMPUR, May 20 — MISC Bhd is bidding for third-party liquefied natural gas (LNG) shipping projects in a move to diversify its business portfolio.

"We are looking for new growth that will add value to our business, but talks with third parties are still in the preliminary stage," said president Datuk Nasarudin Idris.

The shipping and maritime logistics service provider, which is 62.67 per cent owned by Petroliam Nasional Bhd (Petronas), is bracing itself for growing competition in the LNG shipping sector and cut dependence on Petronas contracts.

According to Nasarudin, the sector faces freight rates pressure because there will be 37 new LNG vessels built by industry peers before 2017, to take advantage of projects emerging in the United States, Canada, Mozambique and Nigeria.

"The contraction in rates will have an impact on us, but our contracts are on a long-term basis and have good potential for extension," he told reporters after MISC's annual general meeting here today.            

MISC might have to deal with lower renewal rates for its contracts going forward, said MIDF Research in a note last week.

"The bulk delivery of LNG vessels over 2014-2015, and possible resumption in the operation of Japanese nuclear power reactors, are likely to put a dent in LNG freight rates in the future," it added.

MISC saw its profit jump 62 per cent year-on-year to RM486.4 million for the first quarter ended March 31,2014, with revenue slipping 3.7 per cent to RM2.29 billion. — Bernama