Algoma Central Corporation fuels domestic product tanker business with $127-million newbuild investment in partnership with Irving Oil
June 19 2023 - 7:00AM
Business Wire
Algoma Central Corporation (“Algoma”) (TSX: ALC), today
announced 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 $127 million CAD. These new ships
will be entered on long-term time charters to Irving Oil under
Canadian flag, servicing the energy company’s refinery in Saint
John, New Brunswick, with deliveries to ports in Atlantic Canada
and the US East Coast.
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Algoma Central Corporation fuels domestic
product tanker business with $127-million newbuild investment in
partnership with Irving Oil (Photo: Business Wire)
“Strategically unlocking diversified marine shipping
opportunities and new partnerships form fundamental pillars that
continue to drive our growth and success,” said Gregg Ruhl,
President and CEO of Algoma. “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,” concluded Mr. Ruhl.
“We remain committed to providing a safe and secure supply of
energy products to our customers,” said Ian Whitcomb, President of
Irving Oil. “This investment highlights our company’s continued
commitment to sustainable operations and ensuring the security of
energy in the regions we operate.”
Delivery of the new vessels is expected during the first quarter
of 2025. Upon arrival in Canada, the vessels will be immediately
deployed on the agreed time charter.
New vessel highlights:
- Eco-friendly optimized ice class 1B design
- Boston Beam width of 27.4 metres
- Methanol ready as per ABS Notations - Methanol Fuel Ready Level
3(S), Methanol Fuel Ready Level 2D (TA, ME)
- High voltage and shore power (cold-ironing) ready - ABS
Notation HVSC-Ready
- Enhanced ballasting capabilities to optimize operations in the
Bay of Fundy
About Algoma Central Corporation
Algoma Central Corporation is a global provider of marine
transportation that owns and operates dry and liquid bulk carriers,
serving markets throughout the Great Lakes St. Lawrence Seaway and
internationally. Algoma is aiming to reach a carbon emissions
reduction target of 40% by 2030 and net zero by 2050 across all
business units with fuel efficient vessels, innovative technology,
and alternate fuels. Algoma truly is Your Marine Carrier of
Choice™. Learn more at algonet.com.
About Irving Oil
Irving Oil is a family-owned and privately held international
energy company. For nearly 100 years, our commitment to doing good
business has been grounded in our commitment to people – to our
employees, customers, communities, and partners. Founded in 1924,
our mission is focused on our continued evolution to meet the
changing needs of our customers. Specializing in the refining and
marketing of finished energy products, we operate Canada’s largest
refinery in Saint John, New Brunswick, and Ireland’s only refinery
located in the village of Whitegate. We proudly serve customers
with more than 1,000 fuelling locations and a network of
distribution terminals spanning Eastern Canada, New England and in
Ireland, operating under the Top brand. We are on a continuous
journey of sustainable development, working to reduce our
environmental footprint while continuing to provide safe and
reliable energy to our customers. Named one of Canada’s Top 100
Employers for seven consecutive years, we are proud of our team and
our longstanding commitment to our customers and our communities.
Learn more at irvingoil.com.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230619227759/en/
Gregg A. Ruhl Algoma Central Corporation President &
CEO 905-687-7890
J. Wesley Newton Algoma Central Corporation EVP, Strategy
& Business Development 905-687-7836
Katherine d’Entremont Irving Oil Corporate Communications
506-654-7162
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