PERTH (miningweekly.com) – Diversified miner BHP has tapped energy major Shell to supply first liquefied natural gas (LNG) for five LNG-fuelled Newcastlemax bulk carriers, which will transport iron-ore between Western Australia and China from 2022.
“The LNG bunkering contract marks a significant step in how BHP is working with our suppliers to reduce emissions across the maritime supply chain,” said BHP chief commercial officer Vandita Pant.
“LNG-fuelled vessels are forecast to help BHP reduce CO2-e emissions by 30% 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% emissions intensity reduction of BHP-chartered shipping of our products.”
Shell executive VP Steve Hill congratulated BHP on reducing emissions in its maritime supply chain with the world’s first LNG-fuelled Newcastlemax bulk carriers, saying decarbonisation of the shipping industry must begin immediately, and that 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 contract is the result of a tender process that included potential suppliers across several geographies. Technical capability, available infrastructure and cost competitiveness were among the stringent criteria.
LNG bunkering will take place through the first LNG bunker vessel in Singapore, which is operated by FueLNG, a joint venture between Shell Eastern Petroleum and Keppel Offshore & Marine.
“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% of forecasted Asian LNG bunker demand in 2023,” said Pant.