The MISC Group is making history by being the first company to order ammonia dual-fuel aframax crude tanker newbuildings.

The Malaysia shipping and offshore conglomerate has ordered two 115,000-dwt vessels through its shipping arm AET.

It has contracted the pair against time charters from PETCO Trading Labuan Co Ltd (PTLCL), a subsidiary of Petronas.

The aframaxes will be constructed by China’s Dalian Shipbuilding Industry Co (DSIC).

MISC said the charter and newbuilding contracts represent a significant step forward in the partners’ efforts to make ammonia a viable fuel for the maritime industry.

It added that the ammonia dual-fuel tankers will enable PTLCL to transport its products to customers around the world while contributing to the industry decarbonisation by using ammonia as a cleaner alternative to conventional fuel.

In February last year, AET and PTLCL signed a memorandum of understanding to explore a potential collaboration to deploy future zero-emission aframax tankers.

MISC president and group CEO Captain Rajalingam Subramaniam said the deals are a clear testament of turning ambition into action.

The world's first ammonia dual-fuel aframax tankers will be constructed by China's Dalian Shipbuilding Industry Co. Photo: MISC

“These partnerships seamlessly align with our collective vision of driving meaningful and purposeful change globally as we progress towards a net-zero future.

“With the signing of these contracts, we’re not only advancing sustainable practices but accelerating our journey towards the MISC Group’s 2030 aspirations,” he said.

AET president and chief executive Zahid Osman said: “With today’s signings of the shipbuilding contracts with DSIC and the time charterparty 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 decarbonisation of the shipping sector.

“The introduction of these two vessels will reduce the overall emissions from our operations while we deliver more energy for the world.”

The delivery schedule was not disclosed but shipbuilding players said DSIC is slated to hand them over in the second half of 2027.

They said the ammonia dual-fuel engine will be supplied by CSSC-owned WinGD.

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