KUALA LUMPUR (Sept 29): AET, the Singapore-based maritime transport operator wholly owned by MISC Bhd, has signed a memorandum of understanding (MOU) with Thailand's national energy company PTT for the construction of two Aframax oil tankers that will be powered by green ammonia.

"AET will select a suitable shipyard and the two zero-emission dual-fuel tankers are to be delivered to PTT for long-term charters in [the fourth quarter of 2025] and [the first quarter of 2026]," the two companies said in a joint statement.

"This MOU sets another clear signal of PTT's and AET's commitment to reducing greenhouse gas (GHG) emissions from international shipping as energy efficiency improvements alone will not be sufficient."

AET president and chief executive officer Capt Rajalingam Subramaniam said the company's 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.

"Providing the much-needed boost to create a green ammonia corridor in Southeast Asia would be another desired outcome of this MOU.

"For us, this collaboration with PTT will be complementary to the Castor Initiative, a multinational coalition championed by MISC and its Castor partners committed to making zero emissions in shipping a reality," added Rajalingam, who is also MISC's group chief operating officer.

PTT's international trading business unit senior executive vice president, Disathat Panyarachun, said the partnership underscores the great importance the company places on the development towards a low carbon society and investment in clean energy, as well as its long-term strategy to achieve carbon neutrality and net zero GHG emissions.

"PTT is very pleased to sign the 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," he said.

MISC's share price settled 10 sen or 1.47% higher at RM6.90 on Thursday (Sept 29), bringing a market capitalisation of RM30.8 billion.