KUALA LUMPUR: MISC Bhd's petroleum arm AET has entered into time charter party contracts with Petco Trading Labuan Company Ltd for the world's first two ammonia dual-fuel Aframaxes.
Through these vessels, Petco will be able to transport its products to customers around the world while contributing to the industry decarbonisation by utilising ammonia as the cleaner alternative to conventional fuel.
AET also signed the shipbuilding contracts for these two vessels with Dalian Shipbuilding Industry Co Ltd (DSIC), a subsidiary of China State Shipbuilding Corporation (CSSC).
MISC president and group chief executive officer Captain Rajalingam Subramaniam said the time charter and shipbuilding contracts is a clear testament of turning ambition into action.
"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 are not only advancing sustainable practices but accelerating our journey towards the MISC Group's 2030 aspirations," he said in a statement.
AET president and chief executive officer Zahid Osman said through the partnership, the company takes concrete actions to deliver on its commitment as industry leaders to progress the decarbonisation of the shipping sector.
He added that the introduction of the two vessels will reduce the overall emissions from our operations whilst we deliver more energy for the world.
According to MISC, the partnership represents a significant leap forward in sustainable shipping practices, showcasing the group's ongoing commitment to innovation and environmental responsibility.
MISC will further collaborate with like-minded industry players to drive the development of the required ecosystem to support ammonia as a bunker fuel.
Together with Akademi Laut Malaysia and industry partners, the group will continue the work on training its seafarers to safely manage the new generation of ultra-low emissions tankers.