Towngas and Royal Vopak partner to build a large-scale green methanol supply chain across China and Asia-Pacific shipping markets.
In a strategic move to accelerate the global transition toward green energy, The Hong Kong and China Gas Company Limited (Towngas) has entered into a significant partnership with Vopak China Management Co., Ltd. (Royal Vopak). On July 8, 2025, both parties signed a strategic framework cooperation agreement to jointly develop a comprehensive green methanol supply chain focused on production, storage, bunkering, and trading. This collaboration will primarily target the Chinese mainland, Hong Kong, and the broader Asia-Pacific region, with a particular focus on advancing low-carbon solutions for the shipping industry.
Towngas brings to the partnership advanced proprietary technology capable of converting agricultural and forestry residues, as well as scrap tyres, into green methanol. This green fuel alternative has received multiple international certifications and is increasingly being adopted as a sustainable solution for maritime bunkering. Towngas already maintains a steady production output and is positioned to play a central role in supplying the demand for green methanol.
Royal Vopak, a global leader in tank storage logistics, contributes its extensive network of coastal ports and robust infrastructure for terminal and storage services. This allows for efficient handling and distribution of green methanol across the region. By combining Towngas’s innovative production capabilities with Royal Vopak’s logistical strengths, the partnership aims to significantly enhance the reach and efficiency of the green methanol supply network.
Regionally, the cooperation will develop along several strategic corridors. In the Greater Bay Area—including Hong Kong, Shenzhen, and Guangzhou—the focus will be on integrating production and storage infrastructure to support logistics and the development of terminal facilities. In East China, the cities of Shanghai and Ningbo will serve as primary hubs to boost green fuel bunkering and meet increasing port demand. Meanwhile, in northern China, Towngas’s green methanol plant will supply product to Royal Vopak’s tank storage farm in Tianjin, which will then distribute methanol across domestic and Asia-Pacific markets using Vopak’s extensive distribution channels.
This collaboration also includes a vision for international market expansion, with particular attention to key export destinations such as Singapore, Vietnam, Japan, and South Korea. The goal is to establish a strong regional foothold in the clean energy sector and drive competitiveness in green fuel alternatives.
Towngas Chief Operating Officer – Green Fuel and Chemicals, Mr. Sham Man-fai, emphasized the significance of the collaboration. He highlighted the successful completion of Asia’s largest green methanol bunkering operation—a 6,000-tonne project executed with the support of Royal Vopak’s Tianjin facilities. Looking forward, Towngas’s Inner Mongolia facility will scale its annual production from 100,000 tonnes to 150,000 tonnes by the end of 2025, with long-term plans to reach 300,000 tonnes by 2028.
In the broader scope, Towngas is aiming to establish multiple green methanol plants across mainland China, targeting an annual production capacity of one million tonnes. Supported by Royal Vopak’s infrastructure, this ambitious expansion will lay the groundwork for large-scale applications and long-term clean energy transformation.
