Shipper SFL charters LNG-fuelled car carriers

Bermuda-headquartered shipper SFL Corporation said August 18 that it entered into a long-term charter agreement for two dual-fuelled car carriers that can run on LNG.

SFL entered into the long-term charters “with a leading Asia-based transportation company” for the newbuilds. Combined construction costs are expected to run at about $155mn for vessels that will be hired by the Volkswagen Group.

“This transaction shows our commitment to continue expanding our investment focus to assets with a lower carbon footprint whilst ensuring significant visibility through ten-year firm charters to a very strong counterparty,” CEO Ole Hjertaker said.

Under a protocol led by the International Maritime Organisation, called IMO 2020, shipowners have to limit their sulphur emissions by using fuels such as very-low sulphur fuel oil, liquefied natural gas and other alternatives.

Elsewhere, shippers are taking their own initiative. Finnish company Wartsila, which caters to the marine and energy markets, said June 15 it supports European measures to demonstrate zero-emission solutions for all vessel types and services before 2030.

SFL expects the carriers will be ready by 2024. The company reported Q2 revenue of $116.8mn and net profit of $19.5mn.