Methanex Corporation (TSX:MX) (NASDAQ:MEOH) and Japan’s Mitsui O.S.K. Lines Ltd. have reached an agreement that will see MOL pay $145 million for a 40% minority interest in Methanex’s Waterfront Shipping subsidiary.
Vancouver, B.C.-based Methanex is the world’s largest producer and supplier of methanol to major international markets. Waterfront Shipping is the the world’s largest operator ofmethanol-fueled vessels. On delivery of eight 49,999 dwt vessels ordered last November, some 60% of its fleet will operate on the fuel.
Following MOL’s acquisition of a 40% stake, Methanex will continue to operate Waterfront as a key element of its global supply chain capabilities. There will be no change to Waterfront Shipping’s day-to-day operations due to the transaction, and Paul Hexter will remain president.
The parties say that “through this transaction, Methanex, WFS and MOL will establish a strategic partnership, which will enable Methanex and WFS to benefit from MOL’s broad shipping experience to further strengthen its already excellent shipping operations and capabilities.”
They say that they intend to advance the commercialization of methanol, including renewable methanol, as a viable marine fuel.
In 2016, Methanex, WFS and MOL, in conjunction with other key partners, jointly built the first ocean- going dual-fuel vessels, including the Taranaki Sun (above), capable of running on methanol.