APRIL 13, 2018 — AET Inc. yesterday formalized arrangements for the long-term charter of two newbuild Liquefied Natural Gas (LNG) dual-fueled Aframax tankers to Shell International Trading and Shipping Company Limited.
The 113,000 dwt vessels are currently under construction by South Korean shipbuilder Samsung Heavy Industries (SHI). Shell is to take both vessels on a long-term charter commencing in the fourth quarter of this year.
When operating in gas mode, the two Malaysian-flag AET tankers will emit up to 30% less CO2, 85% less NOx, 99% less SOx and 95% less particular matter (PM), making them among the cleanest Aframax tankers in the market.
AET is the petroleum logistics unit of Malaysian energy logistics group MISC Berhad.
“As part of the MISC Group and its Sustainability Agenda, AET upholds our environmental stewardship by consistently evaluating greener solutions, and our investment in the LNG dual fueled Aframax tankers is a further tribute to this,” said AET’s President and CEO Capt. Rajalingam Subramaniam, speaking at a ceremony to mark the conclusion of the time charter. “Shell is a longstanding and highly valued partner, and we have been working together on these time charter arrangements for quite some time. The fact that Shell has agreed to charter our new ships is a true testament to their commitment to thriving throughout the energy transition and will encourage AET to forge ahead with our commitment to operate a future fleet, where at least half of our ships are fueled with LNG.”
The vessels will each be fitted with twin LNG tanks, allowing them to trade worldwide on LNG and with LNG more readily available now, this makes them well suited to operate in the 0.1% sulfur SECA regions of North America, Northwest Europe and Asia, and ensures full compliance with the upcoming 2020 sulfur cap.
Mark Quartermain, Vice President, Shell Crude Trading, commented: “These two LNG fuelled vessels will help Shell Trading move crude, principally in the Atlantic basin. LNG is a credible marine fuel and will play an important role in our fleet as we introduce cleaner and more efficient vessels. As emissions standards tighten we continue to work with forward thinking companies like AET to support lower emission transportation solutions.”