Total has chartered four LNG-fuelled aframax tanker newbuildings worth about $240m from two shipowners, extending its dual-fuel fleet as the French energy major pursues its emissions-reduction strategy.
Total revealed on Wednesday that it is chartering two 110,000-dwt vessels capable of carrying crude oil or refined products from Norway’s Viken Shipping.
The oil company did not give details on where the Viken ships are being ordered.
According to Norwegian business publication Finansavisen, the ships will be built at China’s Guangzhou Shipyard International (GSI) priced at between $58m and $59m each, against seven-year charters with Total.
Bergen-based Viken controls a fleet of more than 20 ships, eight of which are on long-term charter with Total.
The Viken newbuildings will be in addition to a pair of aframax newbuildings from BW Group-controlled tanker owner Hafnia.
In August TradeWinds reported that Vista Shipping, Hafnia’s joint venture with CSSC (Hong Kong) Shipping, had signed up for four dual-fuel LR2 tanker newbuildings at GSI against charter contracts from Total. Prices were reported at around $60m each.
Hafnia confirmed the charter deal with Total on two ships. The company said the newbuildings will be able to bunker 3,600-cbm of LNG and will have a range of 13,500 nautical miles (25,000 km) when sailing at 14.5 knots.
The orders followed a tender for up to four ships launched by Total earlier this year in which it was offering five-year charter deals on newbuildings fitted with ME-GI propulsion systems.
Total said the first two vessels will be from Hafnia with the remaining duo from Viken. All the tankers will be delivered in 2023 and join the company's time-chartered fleet.
The energy major’s bunkering arm, Total Marine Fuels Global Solutions, will supply the LNG for the quartet.
“The vessels have been designed with the most efficient LNG propulsion technologies to reduce emissions, allowing a significant decrease in greenhouse gases, of more than 5,000 tonnes per year and per ship compared to conventional vessels,” Total said.
“This chartering contract is in line with our Climate Ambition and will contribute to our net zero carbon neutrality target by 2050 or before.”
The four newbuildings extend Total’s LNG-fuelled tanker fleet to six vessels.
In March, the major signed a similar contract with Malaysia’s AET to charter in two pioneering LNG-fuelled VLCCs — the second and third vessels of their type ordered globally. These ships, which are on order at Samsung Heavy Industries in South Korea, are due for delivery in 2022.
Total, which this year set a new ambition to get to net zero emissions for its global business by 2050, said the charter deals follow the strategy it is pursuing to reduce greenhouse-gas emissions in maritime transportation.
Senior vice president shipping Luc Gillet said: “LNG as a marine fuel remains the best and immediately available solution to reduce the carbon footprint of our shipping activities.
“With these four new vessels, we reaffirm our commitment to expand the use of cleaner marine fuels, for a more sustainable shipping.”
Hafnia chief executive Mikael Skov said: "We believe LNG is the bridge fuel that the shipping industry needs to transition towards a low carbon world."
Total said LNG is now the best available and technologically proven solution to significantly reduce the environmental footprint of maritime transport.
Compared with ships powered by fuel oil, its use cuts SOx and particulate emissions by 99%, NOx by 85% and GHG emissions by about 20%.
Trond Lillestolen contributed to this story.
