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AET and TOTAL sign time charter agreement for two LNG dual-fuel VLCCs

08 Apr 2020

Malaysia-based international oil product shipping company AET Tanker Holdings on Tuesday (7 April) entered an agreement with Chartering and Shipping Services SA, a wholly owned subsidiary of Total SA, for the time charter of two liquefied natural gas (LNG) dual-fuel VLCCs. 

The two newbuilds are scheduled to be delivered to AET from Q1 2022.

“AET is MISC Group’s wholly owned petroleum shipping subsidiary and today’s agreement cements its global position as a world class energy logistics provider,” said Yee Yang Chien, Chairman of AET and President/Group CEO of MISC Berhad.

“We subscribe to a robust sustainability agenda which reaches into all corners of our business and includes a commitment to protect the natural environment alongside a strong focus on maintaining business stability and continuity. 

“Today’s agreement with Total takes us a step further in delivering on that agenda. As a Group, we took early and bold decisions to invest in LNG dual-fuel vessels and I am pleased to see the industry responding so positively to our strategy. 

“I am delighted we have made this agreement with Total and I’d like to thank them for their confidence in AET”.

The two newbuilds will be powered by LNG and will be amongst the most environmentally friendly VLCCs in the market.

When in service, they will emit around 20% less CO2 greenhouse gases than conventional vessels; 85% less NOx and 99% less SOx. 

In addition, 99% fewer fine particles will be released. Immediately, these vessels comply with IMO Tier III levels, IMO 2020 sulphur cap and represent a significant step towards the IMO’s ambition to reduce carbon emissions by 50% by 2050 from a 2008 baseline.

“Total is committed to safely deliver energy while reducing its impact on the natural environment and we continuously explore all elements of our business, including our supply chain partners, to ensure minimum emissions,” comments Luc Gillet, Senior Vice President of Total Shipping & Trading

“We seek partners who share this commitment and I’m pleased that AET continues to innovate and take a leadership approach to operating in the cleanest way possible. 

“We’ve partnered with AET for many years and today’s signing is the next logical step in our continuing relationship”.

“AET is investing to build efficiency in our partners’ energy logistics activities and this includes assisting them to meet their environmental targets”, says Capt. Rajalingam Subramaniam, President & CEO, AET.

“Today’s collaboration is a further example of our commitment towards Environmental, Social and Corporate Governance as well as the UN Sustainable Development Goals. 

“We were among the industry leaders in building and operating LNG-powered Aframax vessels and dynamic positioning shuttle tankers and these two new ships will be our first LNG dual-fuel VLCCs.

AET currently operates two LNG dual-fuel Aframax vessels and two LNG dual-fuel Dynamic Positioning Shuttle Tankers within its global fleet.

Related: DNV GL: Green technologies enhance efficiency of shuttle tankers


Photo credit: AET Tanker Holdings
Published: 8 April, 2020

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