PTT, AET to build two zero-emission Aframaxes

Thai state-owned oil and gas company PTT and AET, the petroleum arm of MISC, have signed a Memorandum of Understanding (MOU) for the development and construction of two zero-emission Aframaxes to be powered by green ammonia.

Under the agreement, AET will select a suitable shipyard and the two zero-emission dual-fuel tankers are scheduled to be delivered to PTT for long-term charters in Q4 2025 and Q1 2026 respectively.

“PTT is very pleased to sign MOU with AET, a member of the MISC Group, for our study to develop the first net-zero emission Aframaxes as we are both aligned that the global shipping community must act now and we see green ammonia powered vessels as one of the pathways to achieve the decarbonisation goals,” said Disathat Panyarachun, SEVP, International Trading Business Unit, PTT.

As explained, the MoU is expected to provide the much-needed boost to create a green ammonia corridor in Southeast Asia.

“This MOU signing marks another significant milestone in our growing partnership with PTT as we both place great importance on driving the shipping decarbonisation journey ahead of 2050,” said Capt. Rajalingam Subramaniam, AET President & CEO and MISC Group COO.

“Our collaboration with PTT also goes beyond these first two net-zero green ammonia-powered Aframaxes. As like-minded partners, this MOU provides an avenue to work together on the design, safety, and operational aspects as well as reskilling of mariners as part of the deliverables prior to the potential investment in this innovative project to meet the 2050 environmental agenda earlier than later. “

Malaysia’s shipping group MISC Berhad, South Korean shipbuilder Samsung Heavy Industries (SHI), classification society Lloyd’s Register (LR), Germany’s engine manufacturer MAN Energy Solutions, the Maritime and Port Authority of Singapore (MPA), and Norwegian fertilizer company Yara International ASA formed a coalition named The Castor Initiative in 2021.

The global partnership is committed to making zero-emission shipping a reality by unlocking the potential of ammonia as the next-generation marine fuel.

“The collaboration with PTT will be complementary to the Castor Initiative, a multinational coalition championed by MISC and its Castor partners committed to make zero-emission in shipping a reality,” Subramaniam added.

“With these latest net-zero vessels, AET is contributing further to the development of sustainability shipping to meeting the IMO’s 2030 Greenhouse Gas (GHG) intensity reduction agenda and our commitment across the MISC Group to net-zero GHG emissions by 2050.”