The Hong Kong and China Gas Company Limited (Towngas) (HKEX: 00003) and Royal Vopak have entered a strategic partnership to jointly develop a green methanol supply chain aimed at accelerating shipping decarbonization across mainland China, Hong Kong, and the broader Asia-Pacific region.
Under the new framework agreement, the two companies will combine their strengths to scale up green methanol production, storage, bunkering, and trading. Towngas brings its proprietary technology for converting agricultural and forestry waste, as well as scrap tyres, into certified green methanol. The company already supplies the maritime sector and has achieved multiple international sustainability certifications, including ISCC EU and ISCC PLUS. Meanwhile, Royal Vopak will contribute its extensive coastal terminal infrastructure and logistics network across China to enable efficient storage and distribution.
The partnership targets key shipping hubs, including Hong Kong, Shenzhen, Guangzhou, Shanghai, Ningbo, and Tianjin, creating an integrated supply chain that links green methanol production centers with bunkering and storage facilities at major ports. The collaboration also plans to expand supply to regional markets such as Singapore, Vietnam, Japan, and South Korea.
Towngas recently completed Asia’s largest green methanol bunkering project, delivering 6,000 tonnes through Royal Vopak’s Tianjin terminal. The company’s Inner Mongolia plant is expected to increase annual capacity from 100,000 tonnes to 150,000 tonnes by year-end, with plans to reach 300,000 tonnes by 2028. Towngas ultimately aims to scale to one million tonnes per year with additional plants across China.
This alliance strengthens both companies’ positions in the growing market for sustainable marine fuels, as shipping faces increasing pressure to decarbonize under international regulations. The Asia-Pacific region, home to several of the world’s busiest ports, is emerging as a critical arena for green fuel infrastructure development.
Royal Vopak, with its 3.5 million cubic metres of storage capacity across nine Chinese coastal provinces, continues to position itself as a key enabler in the energy transition, supporting new fuels such as ammonia, CO?, and sustainable feedstocks.
By: Editorial Dept, Oilprice.com – Jul 07, 2025.
