NYK Concludes Long-term Charter Agreement for Methanol-fueled Chemical Tanker

By February 16, 2018August 15th, 2018Marine Fuel


NYK Bulkship (Asia) Pte. Ltd., an NYK Group company based in Singapore, has signed a long-term time charter contract with Waterfront Shipping Company Limited* (WFS) for one newly built methanol carrier. The new ship will be equipped with an engine that enables the vessel to be powered by methanol, fuel oil, marine diesel oil or gas oil — the first NYK ship to make use of such technology. After delivery from the Hyundai Mipo Dockyard (Korea) in 2019, the vessel will be delivered to WFS, a wholly owned subsidiary of Methanex Corporation, the world’s largest producer and supplier of methanol.

Using methanol as a marine fuel helps shipowners meet the International Maritime Organization’s new regulations requiring a global 0.5 percent cap on sulphur content in marine fuels starting in 2020. Using methanol as a marine fuel reduces sulphur oxides (SOx) by approximately 99 percent. In addition, methanol is a clean-burning fuel that produces fewer smog-causing emissions than conventional fuels, such as SOx, nitrogen oxides (NOx) and particulate matter (PM). Methanol fuel is expected to become a more common method of addressing environmental issues in the future.

From an early stage, NYK recognized the potential of LNG marine fuel as an alternative to heavy oil. The company thus constructed and operates LNG-fueled tugboats and car carriers, and an LNG bunkering vessel. NYK has also developed an LNG-fuel sales business. Based on this new contract with WFS, NYK will strengthen its knowledge of methanol-fueled ships and related technology.

The NYK Group will continue to secure business with stable freight rates through long-term contracts and contribute to realizing a sustainable society that will make use of technology that can reduce negative impacts on the environment.

During the signing ceremony held in Vancouver on December 20, 2017 From right: Mr. Paul Hexter, WFS President Koji Kondo, NYK Corporate Officer

* Waterfront Shipping Company Limited (WFS)

Waterfront Shipping, a wholly owned subsidiary of Methanex Corporation, 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 dwt. Its fleet of 28 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.

Source: NYK Line