COSCO Shipping Energy Embraces Methanol Fuel for Six Additional Tankers

COSCO Shipping Energy Transportation, a Shanghai-listed company, has recently concluded significant shipbuilding agreements, securing contracts for the construction of six new tankers at a combined value of $449 million. This development represents a strategic move by the company to enhance its fleet and contribute to the evolving landscape of environmentally conscious shipping.

The contracts were formalized by Hainan COSCO Shipping Energy, a subsidiary of China COSCO Shipping Energy, in collaboration with Yangzhou COSCO Shipping Heavy Industry. Specifically, the agreements cover the construction of three 114,200 deadweight tonnage (dwt) Aframax-type crude oil tankers, amounting to a total investment of $289 million.

What sets these tankers apart is their innovative design as green methanol dual-fuel crude oil carriers. This implies that they will be powered by a combination of traditional fuels and environmentally friendly methanol. The dual-fuel capability is a step towards cleaner energy solutions and aligns with the growing global emphasis on reducing carbon emissions in the shipping industry.

The selection of methanol as a fuel source reflects a broader trend in the shipping industry, with a growing focus on alternative and sustainable energy options. In this context, methanol is emerging as a viable solution due to its lower environmental impact compared to traditional fuels.

Yangzhou COSCO Shipping Heavy Industry, the shipyard responsible for constructing these innovative vessels, is poised to become the world's second shipyard capable of building large-scale methanol dual-fuel oil tankers. This achievement follows the precedent set by Dalian Shipbuilding, which took the lead in this domain.

In addition to the Aframax tankers, China COSCO Shipping Energy has expanded its collaboration with Dalian COSCO Shipping Heavy Industry. This entails the construction of a 49,900 dwt MR-type oil tanker valued at $50 million, showcasing a diverse portfolio of vessels within the company's strategic plans.

Furthermore, the collaboration with Dalian COSCO Shipping Heavy Industry includes an order for two 64,900 dwt Panamax-type crude oil tankers, with a total investment of $130 million. These Panamax carriers are designed to be methanol-ready, demonstrating foresight in anticipating future trends. "Methanol-ready" implies that these vessels can be easily adapted for methanol-based operations at a later stage, aligning with the company's commitment to flexibility and sustainability.

It is noteworthy that both the Aframax and Panamax tanker types are equipped to burn biofuels concurrently, reflecting an additional commitment to eco-friendly practices.

The decision to invest in methanol-powered vessels underscores the company's awareness of the increasing demand for low-carbon solutions in the maritime industry. In embracing these green, low-carbon, and intelligent development trends, China COSCO Shipping Energy positions itself at the forefront of sustainable shipping practices.