MOL secures loan to fund LNG-powered VLCC

Japan’s shipping giant MOL has signed a deal with Sumitomo Mitsui Trust Bank to raise funds through a transition-linked loan for the construction of an LNG dual-fuel very large crude carrier (VLCC).

This is MOL’s sixth financing package based on the sustainable finance framework formulated in January of this year, the firm said in a statement on Wendesday.

MOL did not provide any details regarding the loan.

The firm said that the 309,000-dwt LNG-powered VLCC will be 339.5 meters long and about 60 meters long.

Kawasaki Heavy Industries /Dalian COSCO KHI Ship Engineering will build the vessel, it said.

Back in August 2022, MOL ordered two 309,000-dwt LNG-fueled VLCCs saying that China’s Dalian COSCO KHI Ship Engineering, jointly operated by KHI and China COSCO Shipping, will build and deliver them in 2025 and 2026.

Last year, MOL added two more VLCCs to this order.

MOL has set a target to operate 90 LNG-powered and methanol-fueled vessels by 2030.

The firm recently took delivery of the LNG dual-fuel car carrier, Cerulean Ace.

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