KUALA LUMPUR (Nov 22): MISC Bhd’s (KL:MISC) petroleum and product shipping arm, AET, has inked shipbuilding contracts for two LNG dual-fuel Suezmax vessels, adding to its growing dual-fuel fleet operating worldwide.

The deal marks a “significant step forward” in its energy transition strategy, the international maritime conglomerate said in a press release late on Friday. It did not state the contract value.

The two vessels will operate under long-term time charter party agreements.

With these orders, MISC will have dual-fuel capability in all the tanker sectors it operates in — Aframaxes, Shuttle Tankers, Suezmaxes and very large crude carriers.

“The orders reflect MISC’s continued investment in cleaner and more energy-efficient shipping solutions, and its commitment to advancing the maritime industry’s transition towards lower-carbon operations in support of global net-zero goals,” it said.

AET, which owns and operates crude and product tankers globally, is wholly owned by MISC.

MISC’s fleet currently comprises 106 vessels. With the addition of the latest two LNG dual-fuel Suezmax tankers, the group will have 21 newbuilds progressing through its fleet renewal pipeline that are scheduled to enter the fleet “over the next two to three years”.

“This represents one of the most extensive and forward-leaning renewal cycles in our history, reflecting a strategy that extends well beyond modernisation. It is a deliberate strategy to strengthen long-term cash flow resilience and rejuvenate our portfolio with newer and more energy efficient vessels, ensuring sustained value creation for our shareholders,” president and group chief executive officer Zahid Osman said.

The group had in April last year progressed into ammonia dual-fuel technology with the signing of a time charter party agreement for a series of Aframaxes. Together, these initiatives form a deliberate dual-fuel energy pathway, leveraging liquefied natural gas as a proven transitional solution while preparing for future zero-carbon operations through ammonia.

MISC closed one sen or 0.13% higher at RM7.80 on Friday, giving the company a market value of about RM34.8 billion.