SFL charters two new LNG-powered car carriers

SFL Corporation, controlled by billionaire John Fredriksen, said it would charter two additional newbuild LNG-powered car carriers as part of a deal revealed on Wednesday.

Bermuda-based SFL said in a statement it had entered into a 10-year deal for two 7,000 CEU pure car and truck carriers with a “leading Asia-based transportation company.”

“The aggregate construction cost will be approximately $155 million, and the charter period will be ten years from delivery of the vessels, adding more than $200 million to our contracted charter backlog.” it said.

Moreover, the ships are sister vessels to those SFL has chartered to German giant Volkswagen Group earlier this year.

China’s Guangzhou Shipyard International (GSI) in Nansha will build these LNG-powered car carriers.

SFL said the two new vessels would join the charterer’s fleet in the first and the second quarter of 2024.

“This transaction shows our commitment to continue expanding our investment focus to assets with a lower carbon footprint whilst ensuring significant visibility through ten-year firm charters to a very strong counterparty,” Ole Hjertaker, CEO of SFL Management AS, said.

“Over the last few months, we have added multiple new vessels to our portfolio, increasing our charter backlog by more than $700 million. Many of these acquisitions will deliver during the third quarter, adding immediate cash flow and building our long-term distribution capacity,” he said.

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