Shell charters in two ‘clean’ newbuildings in Malaysia
AET Tankers signs time charter arrangements for 2 Aframax, the world's first LNG fuelled DP shuttle tankers
AET Inc. Limited and Shell International Trading and Shipping Company Limited (STASCO) formalised arrangements for the long-term charter of AET's 2 newbuild LNG dual-fuelled Aframax tankers that are currently being built by Samsung Heavy Industries in South Korea and are due for delivery from Q3 of 2018.
The arrangements will see STASCO take both vessels on a long-term charter commencing in Q4 of this year; when operating in gas mode, the pair of 113,000 dwt vessels tankers will emit up to 30% less CO2, 85% less NOx, 99% less SOx and 95% less particular matters, making them among the cleanest Aframax tankers in the market.
In June 2017, AET was awarded a contract to build and operate 2 LNG dual-fuelled DP2 Offshore Loading Shuttle Tankers for service in oilfields on the Norwegian Continental Shelf of the North Sea, Norwegian Sea and the southern Barents Sea as well as on the UK Continental Shelf.
When operational, these ships are expected to be amongst the world's first LNG fuelled DP shuttle tankers and the most energy efficient. Today's arrangement builds on that achievement and cements AET's position in the LNG dual-fuel market. It marks a further step in the company's ability to offer innovative and environmentally responsible solutions to its global customers.
“As a world leading owner and operator of petroleum vessels we have a responsibility to embrace the future of sustainable shipping. We took the decision to begin building LNG dual-fuelled Aframax vessels some time ago and these 2 Aframaxes are amongst the first to take their place in our global fleet” AET's President and CEO, Capt. Rajalingam Subramaniam, said.
Both Malaysian flagged vessels will be fitted with twin LNG tanks allowing them to trade worldwide on LNG; with LNG more readily available now, this makes them ideally suited to operate in the 0.1% sulphur SECA regions of North America, Northwest Europe and Asia, and ensures full compliance with the incoming 2020 sulphur cap.
“These two LNG fuelled vessels will help us 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” Mark Quartermain, Vice President, Shell Crude Trading, commented.
“It is particularly apt that today's charter arrangements ceremony is taking place in London just after the IMO has concluded a further round of discussions on limiting and reducing ships' emissions. The MISC Group is working to a Sustainability Agenda that ensures we protect and sustain the environment we work within; support the communities we work for, and do all we possibly can to protect our planet for future generations. Today's arrangement to charter our first set of LNG fuelled Aframaxes to Shell is another step on that pathway” AET's Chairman and President/Group CEO of MISC Bhd (AET's parent company), Yee Yang Chien, said.AET - the petroleum logistics unit of Malaysian energy logistics group MISC Berhad - specialises in the global ocean transport of petroleum and owns a fleet of 14 VLCCs, 6 Suezmaxes, 1 Panamax, 43 Aframaxes, 4 DP shuttle tankers, 13 chemical carriers, 5 LR2s, 3 MR2s and 1 LPG tanker. Its orderbook includes 2 Aframaxes, 2 DP2 Offshore Loading Shuttle Tankers. The company is headquartered in Singapore, with commercial centers in Houston, Kuala Lumpur, London, Montevideo, Panama and Rio de Janeiro and an offshore lightering unit in Galveston, Texas.