The Canadian shipowner and Toronto listed Algoma Central Corporation has announced that it has placed an order with Hyundai Mipo Shipyard in South Korea to build two 37,000 DWT ice class product tanker vessels for a total investment of CAD$127 million.
The vessels are of Eco-friendly optimized ice class 1B design, with a Boston Beam width of 27.4 metres, shore power ready and Methanol ready as per ABS class Notations. Delivery of the two new vessels is expected during the first quarter of 2025 the company said.
Upon arrival in Canada, the vessels will immediately enter into long-term time charters to Irving Oil under the Canadian flag, and servicing the energy company’s refinery in Saint John, New Brunswick, with deliveries to ports in Atlantic Canada and the US East Coast.
Gregg Ruhl, President and CEO of Algoma, said that “With this investment, we will augment our fleet with a new asset class, expand the markets served by our Product Tankers segment and add an important new Canadian customer to our business. These vessels have been designed to support Irving Oil’s unique operational requirements and with a view towards optimizing the carbon requirements in these trades, now and into the future, possessing optionality for future methanol and shore power capabilities.”
Ian Whitcomb, President of Irving Oil, said that “We remain committed to providing a safe and secure supply of energy products to our customers,” and “This investment highlights our company’s continued commitment to sustainable operations and ensuring the security of energy in the regions we operate.”