Continuing Programme of Fleet Rejuvenation

The past few months have seen a number of new long-term charter signings for AET, the further strengthening of our global fleet and the growth of our business into niche areas of energy logistics solutions, particularly in the dynamic positioning shuttle tanker (DPST) segment, and through the building of our LNG dual-fuel fleet.

Since late December last year, we have signed agreements with customers to own and operate six Suezmax class DPSTs on long-term charter agreements, and more recently this month a milestone was reached with the signing of an agreement for the charter of two newbuild LNG dual-fuel VLCCs. These will be amongst the first LNG dual-fuel VLCCs ever built.

All six of the DPSTs will be delivered and commence operations from 2022 in Brazilian waters, when they will join the two DPSTs we’ve been operating in this region since 2012, and a further five DPSTs currently under construction and due for delivery in 2020. The two LNG dual-fuel VLCCs are due for delivery in Q1 2022 and will operate globally. This means we currently have an orderbook of 13 vessels, all of which are on long-term contracts and being built with the highest standards of environmental and operational efficiency in mind.

While our industry, like all others, is facing challenging market conditions, these long-term time charter contracts further reinforce AET’s position as one of the global market leaders in the highly specialised DPST market. The investments also mark a significant step forward in the development of an ever-more efficient and diversified global fleet.

As a responsible ship owner and operator, we are not building for the sake of building, but carefully and strategically developing shipping assets that will deliver on our longer-term environmental sustainability goals. Maintaining a fleet of eco-efficient vessels including alongside developing new and innovative vessels, we continuously review and improve our existing portfolio of assets across all vessel segments and invest in new and improved technologies. Older and less economical tonnage, whilst had served clients and industry well, would be leaving our fleet as part of our asset rejuvenation initiative.

With the fleet rejuvenation that will result from the addition of new eco-tonnage we currently have on order; and divesting of less environmentally efficient vessels, our total CO2 reduction on the 2012 baseline (not the 2008 baseline measured by IMO) is in the mid-20% already. This means that we are currently on target to meet IMO’s 2030 target earlier by 2025, and we are already working hard to exceed the 2050 target.

We will do so by leveraging the wealth of expertise available across our global organisation to ensure that we are best positioned to meet our customers changing energy shipping needs, and by working with customers and partners that share our aspiration for building a more sustainable future.

Pictured here is our latest LNG dual-fuel DPST Eagle Blane alongside in Rotterdam for an LNG bunkering operation. Combined with the LNG dual-fuelling and VLOC Recovery Systems, Eagle Blane will save up to an estimated 3,000 tonnes fuel per year compared with conventional DPSTs of the same size. This vessel – and her sister, Eagle Balder – are a clear demonstration of how eco-innovation and commercial viability can co-exist to deliver benefits for customers, the environment and the wider community.

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