Shell Signs Time-charter Deal with AET for Two LNG Dual-fueled Aframaxes

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In Q4 2018, Shell will charter the Malaysian tanker operator AET Tankers two newly built LNG dual fueled Aframax vessels, says a report in Platts.  

The time charter deal which have been formalized recently, has two 113,000 dwt vessels built by Samsung Heavy Industries in South Korea and are due for delivery from Q3 2018.

Impact of the Deal

“These two LNG fueled 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,” said Mark Quartermain, vice president of crude trading and supply at Shell, in a statement released by AET, on Thursday.

When operating in gas mode, these LNG dual fueled tankers would emit up to 30% less CO2, 85% less NOx, 99% less SOx and 95% less particulates.

Both tankers will be Malaysian-flagged.

In early April, AET announced it would equip up to four Aframax new builds with the LNG dual-fuel option. AET’s order book also includes two Suezmaxes and two Long Range 2 tankers.

In the light of coming regulatory changes on bunker fuel, LNG is considered to be a viable alternative to heavy fuel oil. From 2020, all shipping will be required to use fuel with a maximum of 0.5% sulfur.

AET’s Role

In June 2017, AET was awarded a contract to build and operate two LNG dual-fueled 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 among the world’s first LNG-fueled DP shuttle tankers and the most energy efficient.

AET specializes in the global ocean transport of petroleum and owns a fleet comprising 14 VLCCs, six Suezmaxes, one Panamax, 43 Aframaxes, four DP shuttle tankers, 13 chemical carriers, five LR2s, three MR2s and one LPG tanker.

AET is the petroleum logistics unit of Malaysian energy logistics group MISC Berhad. MISC is a subsidiary of Malaysian energy conglomerate Petronas.

So, with these 2 Aframax vessels AET has started a much larger process which will benefit in the long term.

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Source: AET Tankers Pte Ltd

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