Hubline forms JV with Permodalan Satok to transport methanol, supporting Sarawak’s petrochemical growth and exploring green fuel opportunities in marine logistics.
Shipping and aviation services provider Hubline Bhd has entered into a strategic joint venture with Permodalan Satok to expand into the methanol and chemical transportation segment in Sarawak. The collaboration marks a significant step for Hubline as it seeks to strengthen its presence in specialized logistics tied to the region’s growing petrochemical industry.
The newly established joint venture will focus on transporting methanol and other chemical products, particularly to support logistics operations connected to the Sarawak Methanol Complex located in Bintulu. This initiative aligns closely with Sarawak’s broader ambitions to develop its gas and petrochemical sectors under long-term frameworks such as the Sarawak Gas Roadmap, which aims to enhance the state’s energy value chain and industrial output.
According to a regulatory filing submitted to Bursa Malaysia, the joint venture entity—named PSB Hubline Sdn Bhd—will operate as a dedicated transportation arm for Sarawak PetChem Sdn Bhd. The arrangement is expected to be governed by long-term contractual agreements, including minimum volume commitments that ensure stable demand for transportation services. This structure provides both operational security and predictable revenue streams for the venture.
PSB Hubline Sdn Bhd will be formed through Hubline’s wholly owned subsidiary, Hub Carrier Sdn Bhd, with an equity split of 60:40 between Hubline and Permodalan Satok. The venture will begin with an initial paid-up capital of RM1 million, reflecting a measured entry into what is expected to be a high-growth niche within the regional shipping sector.
Permodalan Satok itself operates as a real estate investment arm and is wholly owned by Yayasan Hartanah Bumiputera Sarawak. It also maintains close links with Sarawak PetChem, which owns and operates a major methanol production facility in Tanjung Kidurong, Bintulu. Sarawak PetChem is actively engaged in methanol production as well as broader petrochemical activities, including downstream processing and fuel distribution, making it a key anchor client for the JV.
In addition to conventional methanol logistics, the joint venture will explore emerging opportunities in green methanol, particularly in the marine bunkering segment. This reflects a growing global shift toward cleaner marine fuels and positions the venture to tap into future demand driven by environmental regulations and sustainability goals.
To support its operational expansion, Hubline has also signed a non-binding letter of intent with Zhoushan Ningshing Shipbuilding & Repairing Co Ltd for the construction of two stainless steel chemical tankers. Each vessel will have a capacity of 13,800 deadweight tonnage and will be equipped with dual-fuel engines capable of running on methanol, reinforcing the company’s commitment to environmentally friendly shipping solutions. However, details regarding the cost and delivery timeline of these vessels have not yet been disclosed.
In the financial markets, Hubline’s shares reflected positive investor sentiment, closing 10% higher at 5.5 sen, giving the company a market capitalization of RM235.95 million. The stock has recorded a notable gain of approximately 38% so far this year, indicating growing confidence in its strategic direction and expansion initiatives.
