The shipping group SFL Corporation has commissioned the construction of two new ‘Very Large Ammonia Carriers’ (VLAC). The vessels are due to be delivered in 2028.
According to a statement from the company, which is part of shipping magnate John Fredriksen’s business empire, each of the newbuilds will have a capacity of 93,000 m³. The vessels are to be designed to transport a “wide range of petrochemical gases” and will feature a dual-fuel propulsion system as well as modern technology to improve fuel efficiency and optimise cargo capacity. Delivery is scheduled to begin in the second quarter of 2028; the total construction costs are estimated at around $216 million.
At the same time, the company has entered into long-term time charter contracts with a major, as yet unnamed, oil company, thereby increasing its order book of fixed-price charter contracts by at least around $162 million. The duration of the initial charter period is to be finalised within the next six months, although the order book could increase further by that time. In addition, the charterer will have options to extend the time charter contracts by up to four years.
“The gas tanker project represents another value-enhancing milestone for SFL and expands our portfolio to include assets in a new segment,” said Ole B. Hjertaker, CEO of SFL Management. “The charterer is a European-based oil company with investment-grade creditworthiness; this underlines SFL’s position as a leading provider of assets for maritime logistics. Including the acquisitions and charter extensions already announced this year, we have increased our order book of fixed-price charter contracts by more than $1.3 billion.”
Just recently, the shipowner extended existing charter contracts for six vessels with the shipping company Hapag-Lloyd. This brought the company’s charter backlog to a total of $4.6 billion.
