JP Morgan Announces First Order for Methanol-Fueled Product Tankers in China

JP Morgan Global Transportation Group (JPMGTG) has made a significant announcement regarding its inaugural order for methanol-fueled product tankers to be constructed in China. These vessels, each with a substantial deadweight capacity of 49,800, are poised for construction at Guangzhou Shipyard International (GSI) in China, with an anticipated delivery date in 2026. Furthermore, both ships have been contracted for time-charters with TotalEnergies.

This confirmation arrives approximately one month after the initial announcement of the order by shipbrokers. The decision marks JP Morgan's entry into the methanol fuel sector, representing a strategic move driven by the escalating interest in methanol as a viable solution, particularly within the container shipping and dry bulk sectors.

JP Morgan Global Transportation Group has previously ventured into investments related to liquefied natural gas (LNG) dual-fuel vessels. This new foray into a distinct fuel type is an attempt to establish an "additional vector of green transportation." Andrian Dacy, the Global Head of JP Morgan Alternative's Global Transportation Group, has expressed genuine enthusiasm for this expansion into an innovative fuel technology, firmly underlining its alignment with the company's commitment to mitigating greenhouse gas emissions.

Dacy has also placed significant emphasis on the expanded partnership between JP Morgan and TotalEnergies. These two entities have previously engaged in collaborations across diverse initiatives spanning multiple transportation segments. Now, they intend to unite their efforts in furthering TotalEnergies' global commitment to a cleaner energy future.

Jerome Cousin, the Senior Vice President of Shipping at TotalEnergies, has underscored the immense importance of integrating MR tankers powered by dual-fuel methanol technology into their time-chartered fleet. This strategic step is intrinsically aligned with TotalEnergies' unwavering dedication to reducing the carbon footprint of its shipping operations.

Additionally, TotalEnergies has successfully secured a time-charter agreement for four methanol dual-fuel chemical tankers with Hafnia, a Singapore-based company. Remarkably, all these vessels will also be constructed by GSI, with three of them earmarked for delivery in 2025 and the fourth slated to join the fleet in 2026.

The utilization of green methanol as a maritime fuel brings forth several compelling environmental advantages. Notably, it plays a pivotal role in reducing sulfur oxides (SOx) and particulate matter (PM) pollutants. Moreover, it delivers a substantial 60% reduction in nitrogen oxides (NOx) emissions. However, perhaps the most remarkable aspect of green methanol lies in its nearly 100% reduction in carbon dioxide (CO2) emissions when assessed on a tank-to-wake basis. These striking environmental benefits underscore the pivotal role of green methanol in mitigating the environmental impact of maritime transportation.