PTT and AET Ink MOU for Zero-Emission Aframaxes

September 30, 2022

At signing (l to r) • Mr Disathat Panyarachun, Senior Executive Vice President, International Trading Business Unit, PTT • Capt. Rajalingam Subramaniam, AET President & CEO and MISC Group COO

The MOU signifies the companies’ solid commitment to build tankers capable of running on a zero-emission energy source

PTT and AET have signed a Memorandum of Understanding for the development and construction of two zero-emission Aframaxes to be powered by green ammonia

Jointly, PTT and AET are taking the lead to encourage the use of green ammonia as a main propulsion fuel. 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 Q4 2025 and Q1 2026 respectively.

This MOU sets another clear signal of PTT’s and AET’s commitment to reduce Greenhouse Gas (GHG) emissions from international shipping as energy efficiency improvements alone will not be sufficient.

Mr Disathat Panyarachun, SEVP, International Trading Business Unit, PTT:

“PTT is very pleased to sign 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.

This latest partnership underscores PTT’s vision of Powering Life with Future Energy and Beyond and the great importance we place on the development toward low carbon society and investment in clean energy as well as our long-term strategy to achieve carbon neutrality and net zero Greenhouse Gas (GHG) emissions.”

Capt. Rajalingam Subramaniam, AET President & CEO and MISC Group COO, said:

“This MOU signing marks another significant milestone in our growing partnership with PTT as we both place great importance on driving the shipping decarbonisation journey ahead of 2050.

Our 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 make zero-emission in shipping a reality.

With these latest net-zero vessels, AET is contributing further to the development of sustainability shipping to meeting the IMO’s 2030 Greenhouse Gas (GHG) intensity reduction agenda and our commitment across the MISC Group to net-zero GHG emissions by 2050.”