Canadian shipping company Algoma Central Corporation has ordered two, methanol-ready, 37,000 dwt ice class product tanker vessels to be built to ABS Class at Hyundai Mipo Shipyard in South Korea.
This CAN$127m investment followed an order for two, new, 72,250 dwt methanol-ready, Kamsarmax-based ocean belt self-unloading vessels that will also be built to ABS Class from Algoma. The new product tankers will be entered on long-term time charters to Irving Oil, sailing under the Canadian flag, trading primarily from Saint John, New Brunswick, with deliveries to ports in Atlantic Canada and the US East Coast.
The methanol-ready Kamsarmax vessels will support Algoma’s decarbonisation efforts with the new ships designed to exceed EEDI Level III requirements and to include Tier 3 engines. The vessels are expected to be 40% more efficient than the ships they will replace, owing to a combination of fuel efficiency and optimised cargo lift.
John McDonald, ABS President and COO said: “ABS is proud to help Algoma modernise their fleets and support their sustainability strategy. Methanol is a promising fuel source to reduce shipping emissions, and these vessels will be ready to adopt this as bunkering infrastructure matures.”
Gregg Ruhl, President and CEO Algoma said: ““These vessels have been designed with safety and optimisation at the top of mind and will be a model for the next generation of vessels. ABS has worked with Algoma for over 25 years providing technical expertise and services to help us achieve quality vessel performance, and we look forward to continuing to work together to maximize safety and accelerate efficiency. Strategically unlocking diversified marine shipping opportunities and new partnerships form fundamental pillars that continue to drive our growth and success. 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 optimising the carbon requirements in these trades, now and into the future, possessing optionality for future methanol and shore power capabilities.”
Delivery of the new vessels is expected during the first quarter of 2025. The design of the ships in the latest order features eco-friendly optimised ice class 1B, with Boston Beam width of 27.4m. They will be delivered methanol ready as per ABS Notations – Methanol Fuel Ready Level 3(S), Methanol Fuel Ready Level 2D (TA, ME), with high voltage and shore power (cold-ironing) readiness to ABS Notation HVSC-Ready. They will have enhanced ballasting capabilities to optimise operations in the Bay of Fundy.
