SFL Corporation has ordered two 93,000 cbm very large ammonia carriers (VLACs) for approximately $216m in aggregate newbuilding cost, marking the John Fredriksen-backed owner's first move into the petrochemical-gas segment.

Delivery is scheduled for the second quarter of 2028. The dual-fuel vessels will carry a wide range of petrochemical gases and incorporate the latest technology for fuel efficiency and cargo-intake optimisation.

What does the deal include commercially?

SFL paired the newbuild order with long-term time charters to what it describes as a European-based investment-grade oil major. The fixtures add at least $162m to the company's fixed-rate charter backlog.

The duration of the initial charter period will be finalised within six months, and the backlog figure may increase at that point. The charterer holds extension options of up to four years beyond the initial term.

For SFL, the combination locks yard-cost amortisation against contracted revenue, a structure the company has used repeatedly across its containership, tanker and dry-bulk fleet. The European oil-major counterparty adds a top-tier credit tenant to the lease book.

How does the ammonia move fit SFL's 2026 backlog build?

"The gas carrier project marks another accretive milestone investment for SFL, adding assets in a new segment. Including acquisitions and charter extensions announced so far this year, we have added more than $1.3bn to our fixed-rate charter backlog in 2026," Ole B. Hjertaker, CEO of SFL Management, said.

The ammonia deal is the latest in a string of 2026 transactions. Last month, SFL added roughly $750m to contracted revenue through seven-year charter extensions on six 15,400 TEU containerships serving Hapag-Lloyd. The renewed fixtures run through 2035-36 at fixed rates, locking the German liner into the tonnage for the remainder of the decade.

For container shipping, the Hapag-Lloyd extension secures liner capacity at known cost for a generation of vessels that would otherwise face mid-life re-chartering. For SFL, the seven-year tenor converts a rollover risk into a fixed-revenue stream extending into the mid-2030s.

Why does the order matter for the gas segment?

The 93,000 cbm size places the newbuilds at the top of the ammonia-carrier parcel-size ladder, where demand has tightened as energy-transition projects add to traditional petrochemical and refrigerant flows. Dual-fuel propulsion on these vessels positions SFL to capture fuel optionality as ammonia bunkering infrastructure develops across major ports.

For gas pool operators and petrochemical shippers, the SFL order broadens the field of listed tonnage providers in a segment historically served by a narrower set of owners. The 2028 delivery window will also arrive when European and Asian ammonia trade flows begin absorbing hydrogen-derived cargoes.

At roughly $108m per vessel, paired with a long-term investment-grade charter, the deal sets a yard-cost benchmark for VLAC economics that competing owners will weigh against their own orderbook decisions.

What comes next?

SFL must finalise the duration of the initial charter within six months, a milestone that will set the revenue length supporting the $162m backlog figure. Further backlog growth will hinge on whether the charterer exercises the four-year extension options and on any follow-on ammonia tonnage the company may commit to at the same yard.

For shippers and forwarders, the order increases the likelihood of additional VLAC capacity arriving in 2028, a key data point for forward ammonia charter negotiations as new hydrogen-derived cargoes begin lifting.