AET to Pioneer Development of World's Initial Ammonia Aframaxes

MISC has entered into Time Charter Party Contracts (TCP) with PETCO Trading Labuan Company Ltd (PTLCL) through its petroleum arm, AET, for the world's inaugural two ammonia dual-fuel Aframaxes. These vessels will enable PTLCL to deliver its products worldwide while contributing to industry decarbonization by utilizing ammonia as a cleaner alternative to traditional fuel sources.

Furthermore, AET has entered into Shipbuilding Contracts (SBC) for these two vessels with Dalian Shipbuilding Industry Co., Ltd (DSIC), which is a subsidiary of China State Shipbuilding Corporation (CSSC). The TCP was formally executed by Mr. Zahid Osman, President & CEO of AET, and Mr. Shamsul Bahari Salleh, CEO of PTLCL, witnessed by Captain Rajalingam Subramaniam, President and Group CEO of MISC, and Mr. Ahmad Adly Alias, Chairman of PTLCL. This milestone marks a significant advancement in the partners' endeavors to establish ammonia as a feasible maritime fuel.

Captain Rajalingam Subramaniam, President and Group CEO of MISC, expressed his congratulations to AET and PTLCL for achieving a significant milestone since the signing of the Memorandum of Understanding in February 2023. He emphasized the significance of collaborating with PTLCL, a member of the PETRONAS Group, and thanked Dalian Shipbuilding Industry Co., Ltd. for their involvement in this journey. He commended MISC Marine and New Energy & Decarbonisation of MISC for their crucial roles in realizing this vision.

He stated that the signing of the Time Charter Party Contracts and the Shipbuilding Contracts is a clear demonstration of turning ambition into action. These partnerships are aligned with their collective vision of driving meaningful change globally as they move towards a net-zero future. With the signing of these contracts, they are not only advancing sustainable practices but also accelerating their journey towards the MISC Group's 2030 aspirations.

Zahid Osman, President & CEO of AET, highlighted the significance of today's signings of the Shipbuilding Contracts with DSIC and the Time Charter Party Contracts with PTLCL for the world’s first two ammonia dual-fuel Aframaxes. These actions underscore their commitment as industry leaders to advance the decarbonization of the shipping sector. The introduction of these two vessels will contribute to reducing overall emissions from their operations while continuing to provide energy to the world.

He expressed gratitude to PTLCL and DSIC for their forward-thinking approach and collaboration in spearheading this new generation of ultra-low emissions tankers to support the decarbonization of the maritime industry.

This groundbreaking accomplishment signifies a significant leap forward in sustainable shipping practices, underscoring MISC Group's ongoing commitment to innovation and environmental stewardship. The MISC Group intends to work together with similar-minded industry participants to establish the essential ecosystem required to endorse ammonia as a bunker fuel. Alongside Akademi Laut Malaysia (ALAM) and industry partners, they will continue training seafarers to safely manage the new generation of ultra-low emissions tankers.

MISC Group is poised to lead the charge in sustainable maritime transportation and push the boundaries of what is achievable in the industry, reaffirming its dedication to driving positive change in the maritime sector.