BHP has actually granted its very first LNG supply arrangement for 5 LNG-fuelled Newcastlemax mass service providers, which will certainly transfer iron ore in between Western Australia and also China from 2022.

Shell has actually been granted the agreement to sustain the vessels, which BHP will certainly charter from Eastern Pacific Shipping (EPS) for five-year terms.

BHP Chief Commercial Officer, Vandita Pant, stated: “The LNG bunkering contract marks a significant step in how BHP is working with our suppliers to reduce emissions across the maritime supply chain.”

Image Credits: BHP

“LNG fuelled vessels are forecast to help BHP reduce CO2-e emissions by 30 per cent on a per voyage basis compared to a conventional fuelled voyage between Western Australia and China, and contribute to our 2030 goal to support 40 per cent emissions intensity reduction of BHP-chartered shipping of our products.”

Steve Hill, Executive Vice President, Shell Energy, stated: “I would like to congratulate BHP on reducing emissions in their maritime supply chain with the world’s first LNG-fuelled Newcastlemax bulk carriers. Decarbonisation of the shipping industry must begin today and LNG is the cleanest fuel currently available in meaningful volumes.”

“This LNG bunkering contract strengthens the bunkering market in the region and we look forward to working with BHP and other customers in the maritime sector on their journey to a net-zero emissions future.”

The agreement is the outcome of a tender procedure that consisted of possible vendors throughout a number of locations. Technical ability, offered framework and also price competition were amongst the rigid standards.

LNG bunkering– the procedure of sustaining ships with LNG– will certainly happen with the very first LNG shelter vessel in Singapore,“FueLNG Bellina” The vessel is run by FueLNG, a joint endeavor in between Shell Eastern Petroleum and also Keppel Offshore & &Marine The shelter vessel will certainly have the ability to shelter gas at a price of 100-1,000 cubic metres per hr.

“The LNG bunkering contract will enable BHP to manage fuel supply risk, build LNG operational capability internally, and also help to strengthen the emerging LNG bunkering market in the region. This contract is expected to form up to 10 per cent of forecasted Asian LNG bunker demand in FY2023,” stated Ms Pant.

Reference: bhp.com