SFL Orders Two VLACs with Charters to Oil Major | Mariner News
SFL Corporation has entered the gas carrier segment with an order for two 93,000 cbm Very Large Ammonia Carriers (VLACs), backed by long-term time charters to a European investment-grade oil major. This strategic move diversifies SFL’s asset portfolio and secures significant long-term revenue through its established financing model.
The newbuild VLACs are specified with dual-fuel propulsion and advanced technology for fuel efficiency and cargo intake optimization, capable of carrying a wide range of petrochemical gases. Deliveries are scheduled from the second quarter of 2028, with the aggregate yard construction cost anticipated at approximately $216 million.
Concurrently, SFL has secured time charters that will add a minimum of $162 million to its fixed-rate charter backlog. The duration of the initial charter period will be determined within the next six months, with potential for the backlog to increase at that point. The charterer also holds options to extend the time charters by up to four years.
SFL Management AS CEO Ole B. Hjertaker commented that the gas carrier project marks an accretive milestone investment, introducing assets in a new segment. The commitment from a European investment-grade oil major for long-term charters underscores institutional confidence in the future demand for large-scale ammonia transport and logistics, hinting at ammonia’s growing importance as a commodity or potential future fuel source.
This order places new VLAC capacity with advanced specifications into the market, suggesting a proactive response to evolving energy transition demands and strengthening SFL’s position as a provider of high-quality maritime logistics assets backed by robust charter agreements.
