In London, AET Inc. Limited and Shell International Trading and Shipping Company Limited formalised arrangements for the long-term charter of AET's two newbuild LNG dual-fuelled Aframax tankers.
AET's two 113,000 dwt vessels are currently being built by Samsung Heavy Industries in South Korea and are due for delivery from Q3 of 2018. Today's arrangements will see Shell take both vessels on a long-term charter commencing in Q4 of this year. When operating in gas mode, the two AET 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.
"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 fuelled with LNG."
Both Malaysian flagged vessels will be fitted with twin LNG tanks, allowing them to trade worldwide on LNG and 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.
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."Also present at today's ceremony was AET's Chairman and President/Group CEO of MISC Bhd (AET's parent company), Yee Yang Chien, who said:
"It is particularly apt that today's charter arrangements ceremony is taking place in London just after the International Maritime Organisation 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".
In June 2017, AET was awarded a contract to build and operate two 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.