PSB, Hubline form JV to transport methanol, support future green marine fuel

KUCHING (March 29): A joint venture (JV) company, PSB Hubline Sdn Bhd, has been set up to transport methanol and other chemical products, as well as to pave way for the potential takeoff of green methanol for marine bunkering in the future.

The company is a collaboration between Permodalan Satok Berhad (PSB) and Hub Carrier Sdn Bhd, a subsidiary of Hubline Berhad.

PSB chairman Tan Sri Datuk Amar Dr Abdul Aziz Husain and Hubline executive president Datuk Seri Richard Wee signed a JV agreement during a ceremony held in Bintulu on Friday, said Hubline in a statement.

Following this venture, PSB and Hub Carrier would be pooling their resources, capabilities and expertise to pursue common goals, fostering synergies that would lead to mutually beneficial outcomes and long-term profitability.

As per the agreement, Hub Carrier is holding a 60 per cent proportionate shares, and PSB, 40 per cent.

This 60:40 JV between Hubline and PSB, the holding company of Sarawak Petchem, which owns and operates a state-of-the-art methanol complex, provides an excellent opportunity and shared vision for PSB Hubline Sdn Bhd to achieve its goals of a sustainable corporate growth strategy, value creation and to perform its services as the in-house transportation arm of Sarawak PetChem under long-term contracts arrangement to jointly undertake the transportation of methanol produced from the Sarawak methanol plant, with a minimum commitment volume.

“The initial issued and paid-up share capital of PSB Hubline Sdn Bhd shall be one million (1,000,000) shares of RM1 each,” said Hubline.

“Hubline and PSB are of the view that this joint venture enables another Sarawak-based company to participate meaningfully in the state’s petrochemicals and maritime industry,” it added.

The Sarawak Methanol Complex in Bintulu is a key initiative driven by Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg, to transform the state into a regional, high-value petrochemical and green energy hub by 2030.

This development agenda will add multiple values to Sarawak’s natural resources which will benefit the state economically derived through its value chains.

“Provision of support services, including methanol transportation services, by Sarawak-based companies is in line with the aspiration of this development agenda.

“In addition, PSB Hubline Sdn Bhd will be well positioned to support the Sarawak government, not only in the transportation of methanol, but other chemical products for export from Sarawak which would be developed under the Sarawak Gas Roadmap,” said Hubline.

The JV is expected to contribute positively to the future profitability of Hubline and PSB.

Hubline is also pleased to announce that it has signed a non-binding letter of intent with Zhoushan Ningshing Shipbuilding and Repairing Co Ltd, China, for the construction of two units of 13,800dwt stainless steel chemical tankers with dual fuel (methanol) main engines.