Algoma orders methanol-ready product tanker duo at Hyundai Mipo

Canadian shipping company Algoma Central Corporation (Algoma) has placed an order for two methanol-ready 37,000 dwt product tankers with Hyundai Mipo Shipyard in South Korea.

Illustration; Image Courtesy: Algoma

The investment is worth $127 million CAD ($96 million). The new ships will be entered on long-term time charters to Irving Oil under Canadian flag, servicing the energy company’s refinery in Saint John, New Brunswick, with deliveries to ports in Atlantic Canada and the US East Coast.

Algoma said that the new vessels will feature an eco-friendly optimized ice class 1B design. Featuring a Boston beam width of 27.4 meters, the ships will be methanol ready as per ABS Notations. In addition, the new product tankers will be high voltage and shore power-ready and will boast enhanced ballasting capabilities to optimize operations in the Bay of Fundy.

“Strategically unlocking diversified marine shipping opportunities and new partnerships form fundamental pillars that continue to drive our growth and success,” said Gregg Ruhl, President and CEO of Algoma.

“With this investment, we will augment our fleet with a new asset class, expand the markets served by our product tankers segment and add an important new Canadian customer to our business. These vessels have been designed to support Irving Oil’s unique operational requirements and with a view towards optimizing the carbon requirements in these trades, now and into the future, possessing optionality for future methanol and shore power capabilities.”

Algoma is aiming to reach a carbon emissions reduction target of 40% by 2030 and net zero by 2050 across all business units with fuel-efficient vessels, innovative technology, and alternate fuels.

“We remain committed to providing a safe and secure supply of energy products to our customers,” said Ian Whitcomb, President of Irving Oil.

“This investment highlights our company’s continued commitment to sustainable operations and ensuring the security of energy in the regions we operate.”

Delivery of the new vessels is expected during the first quarter of 2025. Upon arrival in Canada, the vessels will be immediately deployed on the agreed time charter.

The latest order comes on the heels of Algoma’s order for four methanol-ready Kamsarmax-based ocean belt self-unloading vessels placed in cooperation with CSL Group.