The Hong Kong and China Gas Company (Towngas) plans to supply bio-methanol for Pacific Basin’s upcoming fleet of methanol dual-fuel vessels.

IMAGE: Mount Aso bulk carrier. Pacific Basin

Hong Kong-based shipping firm Pacific Basin selected methanol as its preferred fuel in 2022 in anticipation of upcoming global regulations.

In 2024, it ordered four methanol-capable dual-fuel vessels, reaffirming its intention to use green methanol to comply with FuelEU Maritime and expected IMO greenhouse gas (GHG) emissions reduction rules.

All four vessels are scheduled for delivery between 2028-2029 and will be able to run on both methanol and conventional fuels.

Pacific Basin has signed a memorandum of understanding with Towngas to supply bio-methanol for its dual-fuel fleet upon delivery. This is its second such deal following a 2024 agreement with Japan’s Mitsui & Co.

A memorandum of understanding is a non-binding agreement that shows the intentions of two or more parties to cooperate on a specific project. 

The company has also confirmed ongoing discussions with multiple green fuel producers to secure access to bio-methanol, e-methanol and biodiesel.

Bio-methanol bunkering in Hong Kong

Towngas has also signed a preliminary agreement with Hong Kong’s Transport & Logistics Bureau to expand the supply of bio-methanol in the region. Under this agreement, it will “actively supply marine green methanol fuel that complies with current international standards for delivery, bunkering, export, and trading in Hong Kong.”

Physical deliveries will be carried out by Hong Kong-based bunker supplier Chimbusco Pan Nation.

Towngas currently produces 100,000 mt/year of bio-methanol from biomass at its Inner Mongolia plant, with plans to expand capacity to 150,000 mt/year by the end of 2025.

It has also partnered with Chinese energy company Foran Energy Group to develop a 200,000 mt/year bio-methanol plant by 2028. The duo aims to “establish multiple green methanol production bases across China”, targeting a combined output of 1 million mt/year.

Its partnership with Foran Energy will help Towngas expand its capacity to “serve major ports in South China and the Greater Bay Area, including Hong Kong, Guangzhou, and Shenzhen,” Towngas said.

By Konica Bhatt

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