The VLCCs are due for delivery in Q1 2022 from an unnamed yard and will add to AET’s growing portfolio of experience operating large LNG dual-fuel tankers
AET, the energy logistics and tanker operating arm of the Malaysian state-owned energy group MISC Berhad, has announced that Chartering and Shipping Services SA, a subsidiary of the French oil major Total, will charter two LNG dual-fuel powered VLCCs.
The VLCCs are due to be delivered from an unnamed shipyard in 2022. So far, there is only one LNG dual-fuel VLCC on order – the COSCO vessel on order at Dalian. AET has significant experience in supervising LNG dual-fuel tanker newbuilding projects. It has three Suezmax LNG dual-fuel shuttle tankers on order at Hyundai Heavy Industries and four LNG dual-fuel Aframax tankers under construction or launched from Samsung (source: VesselsValue). Two of the AET Aframax tankers are in service with Norwegian state-owned oil and gas company Equinor.
AET stated the two LNG VLCC newbuilds will be among the most environmentally friendly VLCCs in the market. When in service, they will emit around 20% less CO2 greenhouse gases than conventional vessels; 85% less NOx and 99% less SOx. In addition, 99% fewer fine particles will be released. Immediately, these vessels comply with IMO Tier III levels, IMO 2020 sulphur cap and represent a significant step towards the IMO’s ambition to reduce carbon emissions by 50% by 2050 from a 2008 baseline.
Making the announcement, MISC Berhad chairman of AET and president/group chief executive officer Mr Yee Yang Chien said “Today’s agreement cements AET’s global position as a world-class energy logistics provider. We subscribe to a robust sustainability agenda which includes a commitment to protect the natural environment alongside a strong focus on maintaining business stability and continuity. As a Group, we took early and bold decisions to invest in LNG dual-fuel vessels and I am pleased to see the industry responding so positively to our strategy. I am delighted we have made this agreement with Total and I’d like to thank them for their confidence in AET”.
Total Shipping & Trading senior vice president Mr Luc Gillet commented “Total is committed to safely delivering energy while reducing its impact on the natural environment and we continuously explore all elements of our business, including our supply chain partners, to ensure minimum emissions. We seek partners who share this commitment and I’m pleased that AET continues to innovate and take a leadership approach to operating in the cleanest way possible. We have partnered with AET for many years and today’s signing is the next logical step in our continuing relationship”.
AET president and chief executive officer Capt Rajalingam Subramaniam, who is also a past winner of the Tanker Shipping & Trade Industry Leader Award, said “AET is investing to build efficiency in our partners’ energy logistics activities and this includes assisting them to meet their environmental targets. We were among the industry leaders in building and operating LNG-powered Aframax vessels and dynamic positioning shuttle tankers and these two new ships will be our first LNG dual-fuel VLCCs. Total has joined a select group of energy majors who have shown significant leadership in reducing the carbon footprint of safe and environmentally friendly energy transportation.”
MISC is also one of the partners involved in the development of an ammonia powered tanker.
Will these tankers be up for a Riviera Maritime Media award?
Submit your nominations now. The deadline is 20 May 2020.
Once nominations are closed, shortlists are drawn up by our own experienced editorial team in consultation with an industry advisory panel and will be announced 29 May 2020.