Canada’s Algoma Central Corp has confirmed a CAD 127m ($96m) order for two methanol ready ice class product tankers from South Korea’s Hyundai Mipo Dockyard.
The pair of 37,000-dwt tankers will be entered on long-term time charters to Irving Oil delivering products from its refinery in Saint John, New Brunswick, to ports in Canada and the US East Coast, the company said.
TradeWinds reported the order earlier this month for delivery in Spring 2025 at a price that had indicated they were likely to be high-spec vessels.
Algoma CEO Gregg Ruhl said on Tuesday that the vessels had been designed to limit carbon emissions and would have the ability to run on methanol.
The company has set more ambitious goals to carbon emissions than current International Maritime Organization standards and seeks to hit net zero by 2050.
The IMO currently seeks to reduce emissions from shipping by half by that date based on a 2008 baseline, but is expected to sharpen its ambition during a meeting next month.
“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,” said Ruhl.
Owners have looked to invest more in methanol dual-fuel vessels this year, says Clarksons Research. The 42 units ordered represent 34% of the 156 alternative fuel-capable ships ordered before the end of May.
LNG dual-fuel remains the most popular choice with 59 ordered so far this year.
Based in Ontario, Algoma owns and operates bulk carriers and tankers on the Great Lakes and St Lawrence Seaway.
The company also has seven dual-fuel 17,999-dwt product tankers under construction at China Merchants Jinling Shipyard in Yangzhou.
The Vinga-class ships were ordered by Furebear — a 50:50 joint venture between Algoma and Sweden’s Furetank. The newbuildings are slated to be delivered by August 2025.
The tankers will be entered into the Gothia Tanker Alliance and operated by Furetank out of Gothenburg, Sweden.
