SFL Corporation Ltd. is committing approximately $216 million in yard cost to build two 93,000 cbm Very Large Ammonia Carriers for delivery from the second quarter of 2028. The order comes paired with long-term time charters to a European-based investment-grade oil major worth at least $162 million to SFL's fixed-rate backlog, with room to grow once the firm charter period is set.

What is SFL actually buying?

The two hulls will run on dual-fuel propulsion and incorporate the latest fuel-efficiency and cargo-intake-optimization technology specified for new VLAC designs. At 93,000 cubic meters each, they sit near the upper end of the ammonia carrier class. SFL says the vessels can carry "a wide range of petrochemical gases" alongside ammonia.

The $216 million figure covers aggregate yard construction cost for both hulls. SFL's release does not identify the yard, the delivery split between the two vessels, or the financing structure.

Who has chartered the tonnage?

SFL has tied the newbuilds to long-term time charters with what CEO Ole B. Hjertaker of SFL Management AS called "a European based investment grade oil major." The owner has not disclosed the charterer's identity or the daily hire rate.

The parties will determine the initial charter period within the next six months, which means the $162 million backlog floor could rise once that duration is fixed. The oil major also holds extension options of up to four years beyond the initial period — an optionality SFL did not put a dollar figure on.

What does the deal do to SFL's backlog?

The $162 million minimum drops directly into SFL's fixed-rate charter backlog. Adding this transaction to acquisitions and extensions already announced this year, SFL says it has now booked more than $1.3 billion of backlog over the course of 2026.

"The gas carrier project marks another accretive milestone investment for SFL, adding assets in a new segment," Hjertaker said. The order pushes SFL into petrochemical gas transportation for the first time, layering new revenue onto a portfolio that already spans crude, product tankers and containerships.

What are the commercial implications for shippers?

The dual-fuel specification gives the charterer fuel flexibility on long-haul ammonia and petrochemical gas trades, where bunker-fuel decisions are increasingly shaped by emissions rules on European and Asian import routes. At 93,000 cbm each, the vessels sit well above a typical VLGC, pointing to deployment on long-distance hauls rather than intra-regional gas swaps.

For forwarders covering European ammonia offtake tied to fertilizer producers or energy majors, the 2028 delivery adds tonnage visibility on a lane where recent VLAC ordering has been selective. The four-year extension option lets the oil major hedge into the early 2030s without committing to fresh newbuild orders, while SFL retains optionality on redeployment if the charterer walks.

What comes next?

Two milestones will reshape the picture: the firming of the initial charter period within six months, and any subsequent disclosure of the yard and the daily hire. Exercising the four-year option is the variable most likely to push SFL's 2026 backlog intake further past the $1.3 billion mark.