AET， the tanker arm of Malaysia’s top shipping line MISC， has placed an order for the world’s first ammonia-powered aframax tankers.

The 115，000 dwt vessels will be built at Dalian Shipbuilding， with delivery expected in 2027， under a charter with Petronas’ Petco Trading Labuan Company Ltd (PTLCL). Financial terms have not been disclosed.

The order follows last year’s memorandum of understanding when the duo revealed the potential development and construction of one ammonia-fuelled unit.

“Today’s signing of the time charter party contracts and the shipbuilding contracts is a clear testament of turning ambition into action，” said Captain Rajalingam Subramaniam， president and group CEO of MISC.

In April 2022， AET， together with South Korean shipbuilder Samsung Heavy Industries and class society Lloyd’s Register， formed the Castor Initiative to develop two very large crude carriers (VLCCs) that can be operated on green ammonia. The same year， AET also agreed with Thailand’s energy company， PTT， to develop ammonia-fuelled aframaxes.

Zahid Osman， president and CEO of AET， said that with the newbuilding signings， the company “takes concrete actions to deliver on its commitment as industry leaders to progress the decarbonisation of the shipping sector”.

MISC added that it would look to further collaborate with industry players on the development of ammonia bunkering and on the training of seafarers for the new generation of tankers.