SFL Corporation, backed by John Fredriksen, has ordered two large ammonia tankers with a capacity of 93,000 cubic meters. These vessels are capable of transporting a wide range of petrochemical gases and utilize dual-fuel technology and the latest advancements to improve fuel efficiency and optimize loading.
Construction Details and Costs
The delivery of these tankers is scheduled for the second quarter of 2028, and the total construction cost at the shipyards is estimated to be around $216 million. This project is considered a new investment for SFL Corporation and will contribute to the development of the company's assets in a new sector.
Long-Term Charter Contracts
Meanwhile, SFL Corporation has signed long-term charter contracts worth at least $162 million with a major investment-grade oil company based in Europe. The initial term of the charter contracts will be determined in the next six months, and there is potential for this amount to increase. Additionally, the charterer will have options to extend the contracts for up to four years.
Olli B. Hirtaker, CEO of SFL Management, stated: "The gas transportation project represents another positive investment milestone for SFL and adds to our assets in a new sector. Including the purchases and contract extensions announced so far this year, we have added over $1.3 billion to our fixed contract backlog."
Last month, SFL Corporation added $750 million to its contracted revenue by agreeing to extend seven-year contracts with Hapag-Lloyd for six container ships with a capacity of 15,400 TEU. These extended contracts will cover six vessels at fixed rates until the years 2035-36.
