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Tuesday, June 25, 2024

MISC Signs Deals for World’s First Ammonia Dual-Fuel Oil Tankers

Maritime Activity Reports, Inc.

April 19, 2024

(Credit: MISC)

(Credit: MISC)

Malaysia’s MISC Group has entered into time charter party (TCP) and shipbuilding contracts for the development of world’s first two ammonia dual-fuel Aframax oil tankers.

The TCP contract has been signed with Petronas' PETCO Trading Labuan Company (PTLCL), through MISC Group's petroleum arm AET.

Using these vessels, PTLCL will be able to transport its products to customers around the world while contributing to the industry decarbonization by utilizing ammonia as the cleaner alternative to conventional fuel.

AET also signed the shipbuilding contracts for the vessels with Dalian Shipbuilding Industry, a subsidiary of China State Shipbuilding Corporation

The signing of the contracts represents a significant step forward in the partners’ efforts to make ammonia a viable fuel for the maritime industry.

An Aframax vessel is an oil tanker with a deadweight between 80,000 and 120,000 metric tonnes.

“Congratulations to AET and PTLCL for reaching a significant step of materialization 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,” said Rajalingam Subramaniam, President and Group CEO of MISC Group.

“With today’s signings of the shipbuilding contracts with Dalian Shipbuilding Industry 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 decarbonization 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,” added Zahid Osman, President and CEO of AET.