John Fredriksen’s SFL Corporation has secured a 10-year charter deal with a European-based carmaker for two newbuild dual-fuel 7,000 ceu car carriers set for delivery in 2023.
The company said on Oslo Exchange that the contract is on a time-charter basis, and until the LNG-powered newbuilds are delivered from an undisclosed shipyard in China, it will provide two existing car carriers SFL Composer and SFL Conductor, intended to run on biofuel.
Ole B. Hjertaker, CEO of SFL Management, said: “This transaction shows our commitment to invest in assets with lower carbon footprint and also how we can improve performance of existing vessels through the use of alternative fuels, in line with our ESG strategy.”
The deal is estimated to add more than $200m in SFL’s fixed-rate charter backlog, which currently stands at more that $2.4bn.
Over the last 10 years, SFL’s fleet has transitioned from predominately oil production and transportation assets, to mainly consisting of containerships and dry bulk vessels.