07:38:03 EST Thu 09 Feb 2023
Enter Symbol
or Name

Methanex Corp
Symbol MX
Shares Issued 69,909,637
Close 2022-12-06 C$ 51.48
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Methanex's Waterfront Shipping enters time-charter deal

2022-12-06 19:09 ET - News Release

Ms. Nina Ng reports


Waterfront Shipping, a subsidiary of Methanex Corp., has entered into a time-charter agreement with Trafigura, one of the world's largest physical commodity trading groups. Under the agreement, Trafigura will operate the co-owned Waterfront Shipping and Clean Sea medium-range product tanker, Mari Innovator, as part of its global network of vessels used in clean products trading routes. This agreement supports the parties' efforts to help transition the marine shipping industry toward decarbonization and is another example of Waterfront Shipping's leadership in supporting the growing demand for methanol as a marine fuel.

"We're pleased to partner with Trafigura to share our global experience and knowledge with operating and bunkering vessels using methanol fuel technology," said Paul Hexter, president of Waterfront Shipping. "Trafigura plays a vital leadership role in the energy transition and for it to recognize that methanol marine fuel offers a clear pathway towards a low-carbon shipping industry will help build the platform to drive change."

Waterfront Shipping is pioneering the use of methanol as a marine fuel and, as the world's largest operator of methanol dual-fuel vessels, has accumulated over 123,000 operating hours, demonstrating the simplicity and safe use of methanol as a cleaner burning marine fuel. Today, Waterfront Shipping has 18 methanol dual-fuel vessels, with one additional vessel arriving by the spring of 2023, representing approximately 60 per cent of its 30-vessel fleet.

Trafigura's shipping and chartering operations are managed out of key regional hubs in Athens, Geneva, Houston, Lima, Montevideo and Singapore, providing 24/seven coverage of freight and physical commodity markets.

"We're advocating for industry-wide action on shipping emissions and investing in new technologies and vessels to help achieve a more sustainable shipping industry," said Andrea Olivi, head of wet freight for Trafigura. "We're excited about the co-operation with Waterfront Shipping and Clean Sea as we explore and learn also how methanol technology can integrate with our fleet to achieve our carbon intensity reduction goal of 25 per cent by 2030 across our entire chartering operation."

"As a cleaner-burning marine fuel, conventional methanol already meets the International Maritime Organization's (IMO) pollutant emissions regulations, significantly reducing sulphur oxides by 99 per cent, nitrogen oxides by up to 80 per cent and particulate matter by 95 per cent compared to heavy fuel oil. Methanol is also liquid at ambient temperature, safe, easy to handle, widely available, fully compliant with IMO Tier III regulations and can be produced from renewable sources -- offering a clear transition pathway to decarbonization," added Paul Hexter.

Modi Mano, chief executive officer at Clean Sea Transport, said: "The Mari Innovator is our third-generation dual-fuel vessel and offers a number of advantages to Trafigura including the flexibility to diversify fuel options or consume methanol for potential cost savings. It is equipped with the latest technological innovations and fuel consumption is particularly low for a medium-range tanker."

About Waterfront Shipping

Waterfront Shipping, a subsidiary of Methanex, is a global marine transportation company specializing in the safe, responsible and reliable transport of bulk chemicals and clean petroleum products to major international markets in North America, Asia Pacific, Europe and Latin America. Waterfront Shipping operates the world's largest methanol ocean tanker fleet with its fleet comprising vessels from 3,000 to 50,000 deadweight tonnes. Its fleet of 30 modern, deep sea tankers forms a seamless transportation network dedicated to keeping an uninterrupted flow of methanol moving to storage terminals and customers' plant sites around the world. Waterfront Shipping also operates 18 methanol-fuelled ships, and by 2023, approximately 60 per cent of its 30-ship fleet will operate on methanol dual-fuel technology

About Methanex Corp.

Methanex is the world's largest producer and supplier of methanol to major international markets in Asia Pacific, North America, Europe and South America. The company's methanol production sites are located in New Zealand, the United States, Trinidad, Chile, Egypt and Canada. Methanex is headquartered in Vancouver, Canada, and the company's common shares trade on the Toronto Stock Exchange under the symbol MX and on the Nasdaq Global Select Market under the symbol METHANOL.

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