AET Tankers is investing over $500 million to rebuild its VLCC fleet with dual-fuel vessels as part of its drive toward net-zero decarbonization goals.

According to shipbuilding industry sources, the owner has placed an order with Hengli Heavy Industries for a series of LNG dual-fuel newbuildings. The exact number of VLCCs ordered by AET remains unclear, with sources suggesting a figure between four and six vessels. Tanker industry insiders indicate that this order forms part of AET's broader fleet renewal and reconstruction program.

Image source: AET Tankers

Pricing for AET's latest VLCC newbuildings has not been disclosed. One shipbroker estimates the cost per vessel at approximately $138 million. "The estimated price for a conventionally fueled VLCC at Hengli Heavy Industries is around $119 million, with the upgrade to LNG dual-fuel capability requiring an additional premium of approximately $19 million."

As part of its long-term strategy to rejuvenate its fleet and maintain a portfolio of energy-efficient tonnage, the company has divested four conventionally fueled VLCCs between last summer and February of this year: Bunga Kasturi Lima (IMO: 9327114, built 2007), Bunga Kasturi Enam (IMO: 9327554, built 2008), and the 311,900 dwt sister vessels Eagle Vancouver (IMO: 9597240) and Eagle Varna (IMO: 9597252, both built 2013).

Following the completion of these sales, AET's active VLCC fleet currently stands at nine vessels, five of which are LNG dual-fuel capable.

A tanker market source commented: "AET's strategy regarding fuel selection is very clear... As part of its energy transition strategy, the company will only order dual-fuel vessels going forward."

Should this tanker order be confirmed, it would end a five-year VLCC order hiatus for AET. The company last contracted tanker newbuildings in 2021, when it commissioned HW Ocean to construct three LNG dual-fuel vessels, reportedly priced at $100 million each, all of which were secured on time charter contracts with Shell.

Clarksons data shows that Hengli Heavy Industries currently holds the world's largest VLCC orderbook, totaling nearly 90 vessels.

AET Tankers, established in 1994, is a wholly owned subsidiary of MISC and operates a fleet of over 70 vessels, including both LNG dual-fuel and ammonia dual-fuel capable ships.