MOL closes acquisition of Waterfront stake

Japanese shipping major Mitsui O.S.K. Lines (MOL) has concluded the acquisition of a 40 percent stake in Waterfront Shipping (WFS), a subsidiary of Canadian methanol producer and supplier Methanex Corporation.

Taranaki Sun methanol dual-fueled methanol carrier. Photo: Waterfront Shipping/MOL

As informed, Methanex has received proceeds of approximately $145 million from the Japanese company for a 40 percent minority interest in WFS.

Methanex will retain the remaining 60 percent majority interest in WFS and continue to operate WFS as a key element of its global supply chain capabilities.

Methanol is a safe, proven, cost-competitive marine fuel for the commercial shipping industry that can meet current and future emissions regulations.

Through this transaction, Methanex as the methanol producer, WFS as the methanol shipper, and MOL as the provider of multimodal shipping services aim to advance the commercialization of methanol, including renewable methanol as a viable marine fuel.

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Back in 2020, Waterfront signed a contract for a total of eight 49,999 dwt methanol dual-fuel vessels to be built at South Korean shipyard Hyundai Mipo Dockyard. The deal is being carried out in partnership with MOL, Marinvest/Skagerack Invest (Marinvest), Nippon Yusen Kaisha (NYK), Meiji Shipping Co., (Meiji Shipping), and KSS Line.

Under the deal, MOL ordered two of the eight methanol-fueled, methanol carriers to be chartered out to MOL.

The first unit, Capilano Sun, was handed over to MOL in November 2021. The second unit is slated for delivery in 2023.

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Waterfront Shipping operates the world’s largest methanol ocean tanker fleet comprising about 30 vessels from 3,000 to 50,000 deadweight tonnes.

Mitsui O.S.K. Lines operates more than 800 vessels transporting resources, energy, raw materials and finished products.