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SFL announces LNG-fuelled car carrier agreement

Published by , Assistant Editor
LNG Industry,

SFL Corporation Ltd. has announced that it has entered into an agreement with a major European-based automobile manufacturer to charter two new-build dual-fuel 7000 CEU car carriers for a 10-year period from delivery in 2023. The contract is on a time-charter basis, and until the new vessels are delivered they will charter SFL’s two existing car carriers SFL Composer and SFL Conductor. Concurrently, SFL has agreed to construct the two new-build vessels at a leading shipyard in China, subject to final documentation.

The transaction is estimated to add more than US$200 million in fixed-rate charter backlog, and SFL is adding state-of-the-art vessels designed to use LNG to its fleet. In addition, the company intends to co-operate with its customer to use eco-friendly bio-fuel for the propulsion of the two existing vessels.

Ole B. Hjertaker, CEO of SFL Management, said: “We are extremely honoured to be selected by an industry leading automobile manufacturer with clear environmental ambitions. This transaction shows our commitment to invest in assets with lower carbon footprint and also how we can improve performance of existing vessels through the use of alternative fuels, in line with our ESG strategy.

Over the last 10 years, SFL’s fleet has transitioned from predominately oil production and transportation assets, to mainly consisting of containerships and dry bulk vessels today. Including this new transaction, our fixed-rate charter backlog from shipping assets will be more than US$2.4 billion.”

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LNG carrier news LNG as fuel news New-build LNG news