Shipowner Mitsui OSK Lines (MOL) and trader Marubeni have forged an alliance in Russia to develop a dual-fuel methanol carrier.

The Japanese companies said a cooperation deal was signed at the Eastern Economic Forum in Vladivostok with the Russian Far East and Arctic Development Ministry, state development corporation VEB.RF, VTB Bank and ESN Group.

The joint study will examine how to build, operate and use a methanol tanker equipped to run on methanol and very low-sulphur fuel oil.

The vessel will carry methanol produced by ESN Group from natural gas in the Amur region of Russia.

The companies want a ship that will reduce emissions of SOx by up to 99%, particulate matter by up to 95%, NOx by up to 80% and CO2 by up to 15% compared with conventional fuel oil.

"Because methanol is liquid at normal temperature and pressure, it has the advantage of low marine transportation costs," MOL said.

"On land, it can also be stored in ordinary tanks for liquids as a supply base," the company added.

Wider project mulled

Marubeni and MOL are also considering developing a project that would supply methanol as marine fuel should demand grow in the eastern Asian region in future.

ESN Group could also supply this fuel as a "competitive" source in the region.

Private equity-backed ESN is headquartered in Moscow.

Earlier this year, MOL said it was buying a 40% stake in Methanex Corp’s Waterfront Shipping (WFS) for $145m.

The Japanese shipowner said the transaction will "establish a strategic partnership" between the three companies, which will enable Methanex and WFS to benefit from MOL's broad shipping experience to "further strengthen its ... shipping operations and capabilities".

The strategic partnership strengthens a relationship established over 30 years between Methanex, WFS and MOL who, in 2016 in conjunction with other key partners, jointly built the first oceangoing dual-fuel vessel capable of running on methanol.