SFL Orders Two Very Large Ammonia Carriers | Mariner News
SFL Corporation has placed an order for two 93,000 m3 Very Large Ammonia Carriers (VLACs), a move that will add a minimum of $162 million to its fixed-rate charter backlog. The vessels, with a combined construction cost of approximately $216 million, are slated for delivery from the second quarter of 2028.
This investment signals SFL’s strategic positioning within the evolving gas carrier market, particularly as the industry navigates future fuel transitions. The newbuilds will feature dual-fuel propulsion and technology aimed at enhancing fuel efficiency and cargo intake. While specific fuels for the dual-fuel systems were not disclosed, this design choice provides operational flexibility and future-proofing in a sector exploring various decarbonization pathways.
Long-term time charters have been secured for both VLACs with a European-based investment-grade oil major. The initial charter period will be finalized within the next six months, with the potential to further increase SFL’s charter backlog. The charterer also holds options to extend the contracts by up to four years, indicating a strong long-term commitment from a major energy player.
The vessels’ capability to transport a range of petrochemical gases alongside ammonia underscores their versatility, ensuring employment flexibility across existing commodity trades while anticipating future demand for ammonia as a potential marine fuel or energy carrier. This multi-cargo capability mitigates risk and enhances asset utilization.
Including acquisitions and charter extensions announced throughout 2026, SFL has added more than $1.3 billion to its fixed-rate charter backlog this year. This latest order further reflects robust market demand for modern, efficient, and future-ready tonnage, supported by secure long-term employment.
