Methanol

Overseas Shipholding to purchase tanker “Alaskan Frontier” from BP Oil Shipping

OSG intends to reactivate the tanker which has been in cold layup in Malaysia since 2019; ship will undergo engine upgrades including preparing engines for possible methanol bunker fuel in future.

Published

1 year ago

October 17, 2023

Admin

Overseas Shipholding Group, Inc. (OSG) on Thursday (12 October) announced an agreement with BP Oil Shipping Company, USA, to purchase the tank vessel Alaskan Frontier, a sister vessel to three other Alaskan Class tankers operated by OSG’s wholly owned subsidiary, Alaskan Tanker Company.

Following the expected early November completion of the transaction, OSG intends to reactivate the 1.3-million-barrel capacity tanker which has been in cold layup in Malaysia since 2019. OSG plans to make significant investments in the vessel for it to begin commercial trade by the fourth quarter of 2024.

Sam Norton, President and CEO of OSG, said: “The purchase of the Alaskan Frontier brings all four of the Alaskan class crude oil tankers under OSG’s ownership at a time when the prospect for expanded crude oil production in Alaska offers great promise for continued and increasing demand for ships of her type.”

“Upon completion of shipyard work, which will include lifecycle upgrades on the engines that will improve the performance and longevity of the vessel, we believe that the Alaskan Frontier will be primed to provide additional transportation capacity to suit the needs of our customers in a time of limited availability.”

“The full scope of reactivation work is expected to require a period of approximately one year and will, in addition to the engine upgrades, entail a ballast water treatment system installation and other improvements to prepare her for commercial use.”

The total capital commitment for the project, including the purchase price of the vessel, is approximately fifty million dollars.

The engine upgrades for the Alaskan Frontier are considered a lifecycle upgrade, which will be completed by MAN Energy Solutions SE. The comprehensive modernisation of each of the four engines onboard will improve performance and fuel efficiency and also prepare the engines for possible methanol fuel in the future.

It is expected that the fuel efficiency gain will result in 15 to 20% fuel savings as compared to the vessel’s current consumption, leading to a meaningful reduction in carbon output. The significant capital investment being made will permit the Company to operate the vessel for a longer period of time and with fewer maintenance costs for its remaining life.

Photo credit: Overseas Shipholding Group
Published: 17 October, 2023

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Alternative Fuels

South Korea launches USD 696 million green bunker fuel infrastructure fund

Out of KRW 1 trillion, KRW 600 billion will be invested to build port storage facilities capable of supplying alternative marine fuels while KRW 400 billion will be used for constructing four bunkering vessels.

Published

16 hours ago

January 22, 2025

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South Korea launches USD 696 million green bunker fuel infrastructure fund

South Korea’s Ministry of Oceans and Fisheries and Korea Ocean Business Corporation recently held a launch ceremony in Seoul for a KRW 1 trillion (USD 696 million) infrastructure fund that will be used to support the development of storage facilities for green marine fuels and bunkering vessels.

Out of the KRW 1 trillion, KRW 600 billion will be invested to build port storage facilities capable of supplying LNG, methanol, and ammonia, and the remaining KRW 400 billion will be invested in constructing four new LNG and ammonia bunkering vessels by 2030.

The move is expected to meet growing demand for green bunker fuels for domestic vessels and ensure reliable fuel supplies for foreign ships calling at domestic ports.

The ministry also announced that the Ulsan Hyundai Liquid Cargo Terminal Expansion Project was selected as the new fund’s first project to support the demand for methanol bunker fuel for domestic and foreign vessels. The total cost of the project is KRW 240 billion, of which KRW 130 billion will be provided by the infrastructure fund.

In addition, the government plans to strengthen LNG supply capabilities through the Yeosu Myodo LNG Hub Terminal Project scheduled as the second project to be supported by the fund.

Minister of Oceans and Fisheries Kang Do-hyung, said: “Through the infrastructure fund, the government will flexibly expand the eco-friendly ship fuel supply infrastructure in line with future demand so that our ports can continue to secure a competitive edge as a global hub port.”

Photo credit: Ministry of Oceans and Fisheries of South Korea
Published: 22 January, 2025

Methanol

Singapore-based Global Energy, Towngas to develop green methanol bunker fuel supply chain

Both inked a memorandum of understanding to jointly advance supply and distribution of green methanol as a marine fuel for the shipping industry.

Published

2 days ago

January 21, 2025

Admin

Singapore-based Global Energy, Towngas to develop green methanol bunker fuel supply chain

The Hong Kong and China Gas Company Limited (Towngas) on Monday (20 January) said it has signed a memorandum of understanding (M0U) with Singapore accredited bunker supplier Global Energy Trading Pte Ltd (Global Energy) to jointly advance the supply and distribution of green methanol as a marine fuel for the shipping industry.

The strategic collaboration between Towngas and Global Energy integrates production and logistics capabilities to provide end users with a holistic, end-to-end solution at major and regional ports.

The two parties will leverage complementary strengths to develop comprehensive green methanol supply solutions across Asia.

Mr Sham Man-fai, Chief Operating Officer – Green Fuels & Chemicals of Towngas, said: “This partnership represents a significant milestone in the green transition of maritime fuel supply.”

“By combining Towngas’s strengths in green methanol production with Global Energy’s supply chain management and market operation expertise, we are creating a robust platform to accelerate the shipping industry's decarbonisation journey.”

Mr Loh Hong-leong, Managing Director of Global Energy, said, “This collaboration is synergy in motion; together we are creating a one-stop bunkering solution to ensure green methanol is more accessible to the maritime industry.”

“Beyond supply, we could offer advisory on compliance and in managing the benefits of using green methanol.”

Towngas' methanol production plant in Ordos, Inner Mongolia

Towngas’s methanol production plant in Ordos, Inner Mongolia, employing proprietary technology to convert biomass and municipal waste into green methanol, is the first enterprise on the Chinese mainland to achieve ISCC EU and ISCC PLUS certifications for green methanol.

The company has outlined expansion plans to establish additional production bases across China, including in Inner Mongolia, the Greater Bay Area, and Hainan, with the goal of achieving an annual production capacity of 1 million tonnes of green fuel and chemical supplies.

Global Energy, the first company in Singapore to own and operate dedicated bunkering tankers for methanol, has already conducted several methanol bunkering operations in the region. Global Energy delivered over 4.7 million metric tonnes (mt) of marine fuels in 2024.

Photo credit: Hong Kong and China Gas Company
Published: 21 January, 2025

Alternative Fuels

Fratelli Cosulich orders another methanol-ready bunker tanker from Chinese shipyard

Firm placed an order for another methanol-ready chemical bunkering tanker, designed to carry fuel oil, biofuels up to B100, and methanol, with Taizhou Maple Leaf Shipbuilding.

Published

2 days ago

January 21, 2025

Admin

Fratelli Cosulich Group on Monday (20 January) said it has placed an order for another methanol-ready chemical bunkering tanker with Taizhou Maple Leaf Shipbuilding.

The 7,999 dwt IMO Type II chemical bunkering tanker is designed to carry fuel oil, biofuels up to B100, and methanol.

“The delivery of this methanol-ready vessel is scheduled for Q4 2026,” it said in a statement.

With this latest order, the total number of methanol-ready barges in the company’s fleet will increase to four.

“We strongly believe in a multi-energy future and are dedicated to staying ahead of the curve with the latest developments and technological innovations in the shipping industry,” it added.

Manifold Times previously reported Fratelli Cosulich placing an order for two advanced methanol-ready chemical bunkering tankers with the same shipbuilder.

The company ordered its first methanol dual-fuelled chemical bunker tanker on 15 December 2023. The vessel will be delivered in the last quarter of 2025 and will be located at the Port of Singapore under a contract with global commodities trader Trafigura.