Malaysia’s shipowner MISC has ordered and chartered out, via its petroleum arm AET, ‘the world’s first’ two ammonia dual-fuel Aframaxes.
AET signed the shipbuilding contracts for these two vessels with Chinese shipbuilder Dalian Shipbuilding Industry Co. (DSIC), a subsidiary of China State Shipbuilding Corporation (CSSC).
What is more, AET has entered into time charter party contracts (TCP) with Malaysian company PETCO Trading Labuan Company (PTLCL), Petronas’ midstream services arm, for the tanker duo.
Through these vessels, PTLCL will be able to transport its products to customers worldwide while contributing to industry decarbonization by utilizing ammonia as a cleaner alternative to conventional fuel.
The signing of these contracts is said to represent a significant step forward in the partners’ efforts to make ammonia a viable fuel for the maritime industry.
“Congratulations to AET and PTLCL for reaching a significant step of materialisation today since the signing of the Memorandum of Understanding in February 2023. It’s been made more meaningful, collaborating with PTLCL, a member of the PETRONAS Group. Thank you, Dalian Shipbuilding Industry Co., Ltd. for being part of this journey. Well done to MISC Marine and New Energy & Decarbonisation of MISC, the critical enablers in bringing this vision to life,” Captain Rajalingam Subramaniam , President and Group CEO of MISC, commented.
“Today’s signing of the Time Charter Party Contracts and the Shipbuilding Contracts is a clear testament of turning ambition into action. These partnerships seamlessly align with our collective vision of driving meaningful and purposeful change globally as we progress towards a net-zero future. With the signing of these contracts, we’re not only advancing sustainable practices but accelerating our journey towards the MISC Group’s 2030 aspirations.”
“With today’s signings of the Shipbuilding Contracts with DSIC and the Time Charter Party Contracts with PTLCL for the world’s first two ammonia dual-fuel Aframaxes, we take concrete actions to deliver on our commitment as industry leaders to progress the decarbonisation of the shipping sector. The introduction of these two vessels will reduce the overall emissions from our operations whilst we deliver more energy for the world,” Zahid Osman , President & CEO of AET, said.
“I would like to thank PTLCL and DSIC for their forward thinking and collaboration to spearheading this new generation of ultra-low emissions tankers to support the decarbonisation of the maritime industry.”
Last year, MISC partnered up with Swiss engine specialist WinGD and classification society DNV to develop next-generation ammonia engines for ammonia dual-fuel ships. Said to mark a historical milestone as the first of its kind in the world for deep-sea vessels, the agreements were signed through MISC’s entities AET and Akademi Laut Malaysia (ALAM).
Going forward, the MISC Group plans to further collaborate with like-minded industry players to drive the development of the required ecosystem to support ammonia as a bunker fuel. Together with Akademi Laut Malaysia and industry partners, it will continue its work on training its seafarers ‘to safely manage’ the new generation of ultra-low emissions tankers.