MOL to acquire minority stake in Waterfront Shipping

Under the terms of the agreement, MOL will acquire a 40% minority holding in Waterfront Shipping. The transaction, which is subject to regulatory approval and the agreement of MOL’s executive committee, is expected to be valued at US$145 million. The deal will not impact the day-to-day management of Waterfront Shipping, and Paul Hexter will remain president.

The strategic cooperation agreement is expected to accelerate the commercialisation of methanol as a marine fuel, as it brings together the world’s leading methanol producer and methanol shipper, with MOL’s vast shipping experience. Waterfront Shipping is also the largest owner of methanol-fuelled shipping in the world, and cooperated with MOL during the construction of the world’s first dual-fuel methanol-fuelled tanker (Taranaki Sun) in 2016.

Takeshi Hashimoto, President of MOL, said, “MOL is pleased to partner and deepen our long-standing relationship with Methanex, the leader in the methanol industry. This transaction is consistent with MOL’s Environmental Vision 2.1., which regards our active involvement in methanol-fuelled ships as one of the measures for adopting clean alternative fuels.”

MOL has been a long-standing participant in the methanol shipping market. John Floren, President & CEO of Methanex, said, “We have worked with MOL for over 30 years on methanol shipping since the era of Cape Horn Methanol Ltd., a predecessor to Methanex’s Chile operations, and we are confident that our new strategic relationship will help develop the market for methanol as a lower emission marine fuel.”

The Motorship previously reported on MOL’s investment in a world-scale methanol production facility in the Pacific Northwest. The development of the proposed 36m t/y Northwest Innovation Works’ methanol production facility in Washington, USA was halted in June 2021.

Mitsui & Co., Ltd. is also increasing its exposure to renewable methanol production. In March 2021, Mitsui & Co., Ltd. signed an agreement with Celanese Corporation to expand methanol production at their Fairway Methanol LLC joint venture by using Carbon Capture and Use (CCU) using merchant carbon dioxide (CO2) from surrounding plants.