Pacific Basin, Towngas agree green methanol deal

Market: Freight
26/06/25

Hong Kong-based dry shipping firm Pacific Basin Shipping signed an initial agreement with local utility Towngas on 25 June to enhance its access to green methanol marine fuel supplies.

Pacific Basin Shipping foresees green methanol playing a growing role in its fuel strategy as the company expands its fleet of low-emission, dual-fuel vessels and works to decarbonise its operations.

This is in line with tightening maritime regulations aimed at gradually lowering the greenhouse gas intensity of marine fuels.

The agreement outlines a framework for Towngas to supply Pacific Basin Shipping with green methanol certified under ISCC EU, ISCC PLUS or other international standards, supporting compliance with maritime decarbonisation rules.

The partnership with Towngas is a key step towards securing access to green fuels needed to meet upcoming FuelEU Maritime and the International Maritime Organization's Fuel Standard, said Pacific Basin chief executive Martin Fruergaard.

He highlighted green methanol's role in powering the company's low-emission, dual-fuel vessels, which could switch between fuel types based on cost and regulation. The deal also supports its goal of having green fuels make up 5pc of its fuel mix by 2030 and reaching net zero emissions by 2050.

The agreement with Pacific Basin marks a significant milestone in Towngas' decarbonisation efforts and support for cleaner shipping fuels for the global shipping industry, said the utility's managing director Peter Wong.

Pacific Basin Shipping operates and owns modern Handysize, Supramax and Ultramax dry bulk vessels. The company manages a fleet of more than 260 dry bulk vessels, including 108 owned vessels and the rest on charter.

Its fleet expansion plans include four low-emission, dual-fuel Ultramax ships currently under construction in Japan, with delivery set for 2028 and 2029.

By Lisa Cheng

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Pacific Basin, Towngas agree green methanol deal

Related news posts

Tokyo unlikely to yield on car levy despite US pressure

Tokyo unlikely to yield on car levy despite US pressure

Red Sea attacks hit second ship

Red Sea attacks hit second ship

Japanese firms advance LCO2/methanol carrier project

Japanese firms advance LCO2/methanol carrier project

Australia’s BHP charters ammonia-fuelled carriers

Australia’s BHP charters ammonia-fuelled carriers

Mideast Gulf VLCC rates halve as ceasefire holds

Mideast Gulf VLCC rates halve as ceasefire holds

Business intelligence reports

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