MOL Signs Long-term Charter Contract for Methanol Carriers with Waterfront Shipping and Construction of Newbuilding Vessel

December 07, 2020

TOKYO-Mitsui O.S.K. Lines, Ltd. (MOL; President & CEO: Junichiro Ikeda) today announced that it has concluded long-term charter contracts for two methanol-fueled, methanol carriers with Waterfront Shipping Company Limited (WFS; President: Paul Hexter; Headquarters: Vancouver, Canada). The vessels will be equipped with dual-fuel engines that can run on environment-friendly methanol or conventional fuel oil. They are slated for delivery at Hyundai Mipo Shipyard (South Korea) in 2021 and 2023 and will transport methanol for WFS.

MOL owns three methanol carriers equipped with dual-fuel engines-the Taranaki Sun, which was delivered in 2016 and was the world's first methanol carrier with a methanol-fueled engine, the Manchac Sun, and the Cajun Sun. All three vessels are under long-term charter contracts for WFS. The two new vessels will be MOL's fourth and fifth methanol-fueled ships chartered to WFS, which makes MOL owners of one of the world's largest methanol-fueled fleet. The new vessels will be managed by a MOL Group company, MOL Tankship Management Pte Ltd (MOLT; Headquarters: Singapore), which will leverage its experience and knowledge in the management of methanol-fueled vessels to deliver performance and environmental benefits.

Methanol is an environmentally-friendly fuel and, compared to heavy oil, it significantly reduces nitrogen oxide (NOx) emissions and virtually eliminates emissions of sulfur oxide (SOx). The new vessels also conform to environmental regulations such as NOx Tier III requirements (Note 3) established by the International Maritime Organization (IMO).

Leveraging its accumulated expertise as one of the world's largest methanol carrier owner/operators, MOL is working to further expand its methanol transport services by meeting a broad range of customer needs.

The MOL Group addresses today's critical environmental issues in its Environmental Vision 2.0 and aims to achieve sustainable net-zero GHG emissions by bringing to bear its group-wide strength, while continuing to take a proactive approach to reducing the environmental impact of its business activities.

(Note 1) About Waterfront Shipping
Waterfront Shipping, a wholly-owned subsidiary of Methanex Corporation (President & CEO: John Floren), is a global marine transportation company specializing in the safe, responsible and reliable transport of bulk chemicals and clean petroleum products to major international markets in North America, Asia Pacific, Europe and Latin America. Waterfront Shipping operates the world's largest methanol ocean tanker fleet with its fleet comprising vessels from 3,000 to 50,000 deadweight tonnes. Its fleet of 30 modern, deep sea tankers forms a seamless transportation network dedicated to keeping an uninterrupted flow of methanol moving to storage terminals and customers' plant sites around the world. For more information, please visit https://www.wfs-cl.com/

(Note 2) Please refer to the July 10, 2017 press release:
Three MOL-owned Methanol Carriers Earn 'Technology Special Prize' in Ship of the Year 2016 Awards - The World's First Series of Methanol Carriers with Main Engine Using Methanol -

(Note 3) About IMO NOx Tier III requirements
It takes a step-by-stem approach to the regulation of NOx emissions in engine exhaust gas. Tier I targets vessels delivered from 2000-2010, requiring emission values according to the engine's rated rpm. The Tier II targets vessels delivered after 2011, requiring reduction of 15.5-21.8% from the Tier I. Tier III targets vessels delivered after 2016, requiring 80% reduction from Tier I, in Emission Control Areas (ECAs).