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Sovcomflot secures funding for LNG-fuelled oil tankers

SCF Group borrows $252 million from six banks in seven-year credit facility to build six Aframax tankers.

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St. Petersburg-based shipping firm PAO Sovcomflot (SCF Group) on Friday (6 April) entered a new $252 million seven-year credit facility arrangement with international banks ABN AMRO Bank, BNP Paribas, Citibank, ING Bank, KfW IPEX-Bank, and Societe Generale.

The funds will be used to finance the construction of a series of six Aframax tankers, the first-ever such vessels purpose-designed to mainly use liquefied natural gas (LNG) as a bunker fuel, currently under construction and due for delivery from Q3 2018 to Q2 2019.

Two vessels will work exclusively for Shell under time-charters for up to ten years; Shell will provide LNG fuel for all the six tankers across North West Europe and the Baltic.

Each 114,000-deadweight tanker will have an ice class 1A hull, enabling safe year-round export operations from regions with challenging ice conditions, such as the Baltic.

“We are delighted to have concluded a new long-term financing agreement for SCF Group, and are grateful to our long-standing financial partners for their continued support of SCF’s business and growth plans,” says Nikolay Kolesnikov, Senior Executive Vice-President, Chief Financial Officer of SCF Group.

“We are also pleased to welcome establishing relations with new international lenders to the group.

“This new loan agreement clearly demonstrates the confidence of international partners in SCF Group despite the current challenges faced by the global economy and the shipping market.

“This is the second successful debt financing accomplished by SCF Group in 2018, which now allows the company to address in full its financing requirements for the newbuilding programme of 2018-2019.”

Photo credit: Sovcomflot 
Published: 9 April, 2018

 

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Alternative Fuels

DNV at SMM: Chinese shipbuilders, European owners seek closer ties on alternative bunker fuels

Chinese shipbuilders and European shipowners called for closer collaboration on vessel development, alternative fuels and digitalization during the inaugural China-Europe Maritime Summit at SMM 2026.

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Chinese shipbuilders and European shipowners called for closer collaboration on vessel development, alternative fuels and digitalization during the inaugural China-Europe Maritime Summit at SMM 2026, according to classification society DNV on Friday (4 September). 

The summit, jointly organized by the China Association of the National Shipbuilding Industry (CANSI), the German Shipowners’ Association (VDR) and DNV, brought together leaders from two maritime sectors that collectively shape a significant share of the global fleet. 

Energy efficiency, operational flexibility and digital innovation were highlighted as key areas for the industry as it navigates decarbonization targets, evolving regulation and uncertainty around future fuel pathways.

Knut Ørbeck-Nilssen, Group President and CEO at DNV, said: “Gathering leaders from across Chinese shipbuilding, European shipping and the wider maritime value chain in one room is both timely and important. The decisions being made across our industry today will shape shipping for decades to come, and this summit demonstrates a shared commitment to shaping the future of our industry together.”

Xu Peng, Chairman of China State Shipbuilding Corporation (CSSC), said: “China and Europe’s maritime sectors share aligned missions, complementary strengths and promising prospects. This summit can serve as a starting point for deeper cooperation between China’s shipbuilding industry and Europe’s shipping community, and help broaden the boundaries of full‑chain collaboration and build an interconnected ecosystem.”

Dr. Gaby Bornheim, President of the German Shipowners’ Association (VDR), said: “For shipowners, a new vessel is never an investment for the next quarter. It is a commitment for decades. Long-term investments require trusted partnerships, and many of the world’s most advanced commercial vessels are the result of cooperation between European shipowners and Chinese shipbuilders. Excellence is rarely achieved in isolation.”

China’s shipbuilding industry accounts for around 70% of the global orderbook, while European shipowners operate more than one-third of the world’s fleet capacity. As the global shipping industry faces increased uncertainty, finding solutions that provide flexibility is essential. 

The summit featured two high-level panel discussions moderated by Dr. Martin Kröger, CEO of VDR, and Li Yanqing, Vice Chairman and Secretary General of CANSI, bringing together senior executives from leading Chinese shipbuilders, including China Merchants Industry (CMI), Guangzhou Shipyard International (GSI), Shanghai Waigaoqiao Shipbuilding (SWS), and Shanghai Merchant Ship Design & Research Institute (SDARI), alongside European shipowners and operators such as Vogemann Reederei, Briese Schiffahrt, Bernhard Schulte, MPC Containerships, and Grieg Edge, as well as DNV. 

Discussions further highlighted the importance of close China-Europe collaboration to support shipping’s transformation.

 

Photo credit: DNV
Published: 7 September, 2026

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Alternative Fuels

Auramarine: Marine fuel flexibility will be key to shipping’s energy transition

Operators who adapt best will be the ones who built in the flexibility to their marine fuel strategy to respond as conditions change, says CEO John Bergman.

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Finland-based fuel supply systems provider Auramarine on Wednesday (2 September) said it believes shipping’s energy transition is entering a phase where flexibility, not fuel choice, will determine which operators adapt successfully. 

With fuel price volatility, inconsistent alternative availability and tightening environmental regulation at different speeds across regions, Auramarine argued that the right approach to fuel supply infrastructure is now as strategically important as the fuel itself.

“The industry has spent years asking which fuel will win,” said John Bergman, CEO, Auramarine. 

“That may be the wrong question. No operator today can predict with confidence what will be available, compliant or commercially viable in five years. The operators who adapt best will be the ones who built in the flexibility to their fuel strategy to respond as conditions change.”

Auramarine’s own fuel split technology, first delivered in 2019 and now installed on around 20 vessels, reflects this thinking in practice. The retrofit system adds a fuel booster module onboard, allowing a ship to run different fuels through the same engine without the extended changeover procedures dual-fuel systems typically require.

This lets operators switch to MGO or biofuel, for example, to meet an ECA requirement, support maintenance schedules, or respond to fuel pricing shifts, without taking a vessel out of service. Delivered in sections through existing doors and hatches, it can be retrofitted to vessels already in operation.

Bergman sees this need for adaptability sharpening in sectors under the most operational and regulatory pressure. 

“Cruise and ferry operators feel this earliest and most acutely,” he said. 

“These vessels constantly move between regulatory zones and environmentally sensitive waters, so the ability to switch fuel supply without disrupting a schedule is an operational necessity. What’s notable is how many operators in this space still don’t know infrastructure like this exists, despite how directly it addresses what they’re already dealing with.”

Reliable flexibility requires a tailored approach, not just adding equipment. “The best results come from scoping flexibility to an owner’s actual fuel strategy, not adding complexity for its own sake,” Bergman added. 

Automated fuel changeover systems are designed to keep multi-fuel operations straightforward for crews, while a structured maintenance approach ensures inspection, testing and servicing can be carried out safely throughout the vessel’s lifecycle. This is where Auramarine’s lifecycle services play a central role, supporting operators well beyond initial installation with the ongoing servicing, spares and technical support needed to keep flexible fuel systems performing reliably for the long term, whatever the fuel landscape looks like in years to come.

“Over the next few years, operators who succeed will be the ones who stopped waiting for certainty and started building optionality instead,” Bergman added

“In a transition this uncertain, adaptability matters more than any single fuel bet. That’s the conversation we want the industry to have.”

 

Photo credit: Auramarine
Published: 7 September, 2026

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Alternative Fuels

Yang Ming orders six LNG dual-fuel, ammonia-ready containerships from Hanwha Ocean

Each of the six new vessels will have a capacity of up to 13,650 TEU and feature LNG dual-fuel propulsion and Ammonia Fuel Ready specifications.

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Yang Ming orders six LNG dual-fuel, ammonia-ready containerships from Hanwha Ocean

Taiwanese shipping firm Yang Ming Marine Transport Corporation (Yang Ming) and South Korean shipbuilder Hanwha Ocean on Wednesday (2 September) signed a shipbuilding contract for six 13,000 TEU class LNG dual-fuel container vessels. 

The contract was signed by Dr. Chuck Tsai, Chairman of Yang Ming, and Mr. Charles Kim, CEO of Hanwha Ocean. The vessels are scheduled for delivery between 2028 and 2029. 

They will complement Yang Ming’s existing fleet of 10,000+ TEU vessels and serve as key vessels on East-West services, with deployment flexibility across trade lanes connecting Asia with the East and West Coasts of North America, South America, and the Mediterranean. 

Each of the six new vessels will have a capacity of up to 13,650 TEU and feature LNG dual-fuel propulsion and Ammonia Fuel Ready specifications.

“As Yang Ming transitions toward net-zero emissions, LNG provides a relatively mature and economically viable alternative fuel solution, capable of reducing greenhouse gas emissions by approximately 20%,” the company said. 

“At the same time, ammonia can serve as a carbon-free fuel by utilising converted LNG storage facilities, while offering relatively lower conversion costs and comparatively well-developed supply chains and infrastructure. The Ammonia Fuel Ready design will therefore provide Yang Ming with greater flexibility in responding to increasingly stringent international regulations on greenhouse gas emissions.”

In addition, the vessels will be equipped with Type B LNG fuel tanks with a design pressure of 1.0 bar to enhance the safety and efficiency of LNG operations, together with a range of energy-saving technologies, including Wind Shields, Rudder Bulbs, Pre-Swirl Stators, and Shore Power Systems. Smart ship technologies and cybersecurity protection features will also be incorporated to enhance operational efficiency, safety, and reliability while effectively reducing fuel consumption and greenhouse gas emissions.

Deliveries under Yang Ming’s next-generation fleet optimization plan commenced earlier this year. By 2030, a total of 24 new vessels are expected to enter service. 

This includes 18 LNG dual-fuel vessels—comprising five 15,500 TEU, seven 16,000 TEU, and the six 13,000 TEU vessels under this contract—alongside six 8,000 TEU methanol dual-fuel-ready ships. 

 

Photo credit: Yang Ming Marine Transport
Published: 4 September, 2026

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