NYK Concludes Long-term Charter Agreement for Methanol-fueled Chemical Tanker

During the signing ceremony held in Vancouver on December 20, 2017 From right: Mr. Paul Hexter, WFS President Koji Kondo, NYK Corporate Officer

NYK Bulkship (Asia) Pte. Ltd., an NYK Group company based in Singapore, has signed a long-term time charter contract with Waterfront Shipping Company Limited (WFS) for one newly built methanol carrier. The new ship will be equipped with an engine that enables the vessel to be powered by methanol, fuel oil, marine diesel oil or gas oil — the first NYK ship to make use of such technology. After delivery from the Hyundai Mipo Dockyard (Korea) in 2019, the vessel will be delivered to WFS, a wholly owned subsidiary of Methanex Corporation, the world’s largest producer and supplier of methanol.

Using methanol as a marine fuel helps shipowners meet the International Maritime Organisation’s new regulations requiring a global 0.5 percent cap on sulphur content in marine fuels starting in 2020. Using methanol as a marine fuel reduces sulphur oxides (SOx) by approximately 99 percent. In addition, methanol is a clean-burning fuel that produces fewer smog-causing emissions than conventional fuels, such as SOx, nitrogen oxides (NOx) and particulate matter (PM). Methanol fuel is expected to become a more common method of addressing environmental issues in the future.

From an early stage, NYK recognised the potential of LNG marine fuel as an alternative to heavy oil. The company thus constructed and operates LNG-fueled tugboats and car carriers, and an LNG bunkering vessel. NYK has also developed an LNG-fuel sales business. Based on this new contract with WFS, NYK will strengthen its knowledge of methanol-fueled ships and related technology.

Sea News, February 16