The move comes after China implemented a 0.5% sulfur limit on bunker fuel, starting October 1 in some areas and ports.

This deal will generate net cash proceeds of $8.6 million after the repayment of the existing bank loan.

APL will start bunkering with the new LSFO 0.5% sulfur bunker fuel from the second half of 2019 onwards, it said.

"Our goal, through this partnership, is to offer safe and efficient LNG fueling solutions to our customers," ADNOC L&S Chief Executive Abdulkareem Al Masabi said.

"We believe scrubbers to be an economical way to comply with the new regulations," it said.

Open-loop scrubber systems were a short-term fix at best and would likely be regulated, a source said.

Among the 75 gas carriers under construction, 37 will have a scrubber installed and three more have options to install the equipment, it said.

The biofuel will provide an alternative to distillates and ULSFO to comply with upcoming GHG and sulfur emissions rules.