Methanex shipping subsidiary to build fleet of flex-fuel vessels

09 December 2013 18:20  [Source: ICIS news]

HOUSTON (ICIS)--Methanex’s shipping subsidiary has agreed to build as many as nine flex-fuel vessels, with six to be delivered in 2016, the Canada-based producer said on Monday.

The methanol producer’s Waterfront Shipping will replace older vessels in its fleet with new 50,000-tonne ships that will run on methanol, fuel oil, marine diesel oil or gas oil, the company said.

Methanex’s release did not state the total cost of the vessels.

Methanol is a sulphur-free fuel. Tightening environmental regulations require that shippers use cleaner-burning fuels.

In July, Methanex announced that it would buy four methanol-fueled engines from MAN Diesel & Turbo in the summer of 2015.

According to the latest announcement, Waterfront will charter the flex-fuel vessels to replace older ships in its 18-vessel deep-sea fleet and to support increased demand from Methanex’s plan to move two methanol plants from Chile to Louisiana.

Three other companies will each own two of the new ships: Japan-based shipper Mitsui OSK Lines Ltd, which operates more than 900 vessels; Norway-based shipper Westfal-Larsen & Co A/S, which operates 12 vessels; and Marinvest/Skagerack Invest, an investment group that owns and manages product and chemical tankers.

The ships will be built by Hyundai Mipo Dockyard and Minaminippon Shipbuilding Co., Ltd.

By: Lane Kelley
+1 713 525 2653

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