Algoma Central orders methanol-ready product tanker duo

Written by Nick Blenkey
Gregg Rule says methanol-ready products are shore-powere ready too

Algoma Central president and CEO Gregg Ruh says vessels have optionality for future methanol and shore power capabilities.

Canada’s Algoma Central Corporation continues to move towards methanol. It has placed a CAD 127 million (about USD 96 million) order with Hyundai Mipo Shipyard in South Korea to build two 37,000 DWT methanol-ready product tankers. The ice class vessels will be entered on long-term time charters to Irving Oil under Canadian flag, servicing Irving’s refinery in Saint John, New Brunswick, with deliveries to ports in Atlantic Canada and the U.S. East Coast.

Like the four Kamsarmax-based self-unloading bulkers ordered earlier this year by Algoma Central and CSL Group, they will be methanol-ready,

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

“We remain committed to providing a safe and secure supply of energy products to our customers,” said Ian Whitcomb, resident 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 methanol-ready product tankers is expected during the first quarter of 2025. On arrival in Canada, theywill be immediately deployed on Irving Oil time charter.

New vessel highlights:

  • Eco-friendly optimized ice class 1B design
  • Boston beam width of 27.4 meters
  • Methanol ready as per ABS notations – Methanol Fuel Ready Level 3(S), Methanol Fuel Ready Level 2D (TA, ME)
  • High voltage and shore power (cold-ironing) ready – ABS notation HVSC-Ready
  • Enhanced ballasting capabilities to optimize operations in the Bay of Fundy
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