Wan Hai walks away from LNG, commits to methanol amid regulatory shifts

TAIWANESE carrier Wan Hai has scrapped plans to use liquefied natural gas for its newbuildings and instead committed to methanol engines, placing engine orders for 32 containerships with Swiss engine designer WinGD.

The carrier, which had previously considered switching from methanol to LNG engines for eight 16,000 teu containerships ordered at South Korea yards at estimated cost of $30m per ship, has now reaffirmed its original methanol plan, marking a firm stance in the debate over alternative marine fuels.

“We will continue to monitor and study which fuel best meets our needs,” Wan Hai vice- president of the operation division Laura Su told Lloyd’s List. “Until a firm conclusion is reached, we will stick to the original design.”

WinGD, a subsidiary of China State Shipbuilding Corp, announced it had secured contracts to supply methanol dual-fuel X-DF-M engines and methanol-ready X-engines for 32 container vessels from a Taiwanese owner. These include 12 containerships of 16,000 teu and another 20 of 8,700 teu containerships.

Wan Hai’s decision comes amid a backdrop of shifting fuel strategies among shipowners, as the sector grapples with the challenges of decarbonisation and prepares for the enforcement of IMO’s mid-term greenhouse gas measures.

After 2030, under the IMO’s Net-Zero Framework, LNG-powered vessels that fail to meet emissions targets, specifically the Direct Compliance Target will face Tier I penalties starting at $100 per tonne of CO2 equivalent.

A Taiwanese source also confirmed to Lloyd’s List the decision not to switch to LNG was due to net zero requirements, as using LNG would trigger Tier I penalties.

According to WinGD, the client had been actively evaluating LNG dual-fuel solutions up until April 2025, ahead of the IMO’s MEPC81 session, but ultimately chose methanol propulsion after IMO finalised its Net Zero Framework.

While industry giant Maersk has recently hedged its decarbonisation strategy by turning back to LNG due to slower-than-expected production of green methanol and uncertainty surrounding shipping carbon prices, Wan Hai has instead reaffirmed its methanol strategy.

Lloyd's List Daily Briefing 02 July 2025

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