In the continuing efforts to deploy LNG-fueled vessels,
Australian mining giant BHP has become the latest to reach agreements to
support its adopting of the vessels which will reduce its share of CO2
emissions. Starting in 2022, the mining company plans to transport iron ore
between Western Australia and China on five LNG-fueled Newcastlemax bulk
carriers, which are projected to be the world’s first LNG iron ore bulk
carriers of that size.
“LNG fueled vessels are forecast to help BHP reduce CO2-e emissions
by 30 percent on a per voyage basis compared to a conventional fueled 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,” said BHP Chief Commercial Officer, Vandita Pant.
BHP announced to support its conversion to LNG-fueled ships
it will be awarding an LNG supply agreement to Shell. The agreement calls for
the LNG bunkering to take place in Singapore. The FueLNG Bellina bunker vessel
operated by FueLNG, a joint venture between Shell Eastern Petroleum and Keppel
Offshore & Marine, will supply the vessels which will be on charter from
Eastern Pacific Shipping (EPS) to BHP.
“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,” said Ms. Pant.
“This contract is expected to form up to 10 percent of forecasted Asian LNG
bunker demand in FY2023.”
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.
Steve Hill, Executive Vice President, Shell Energy, said:
“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.”
BHP announced its plans for the LNG-fueled bulk carriers
launching a tender in July 2019. EPS was awarded the five-year time charter
contract for five LNG-fueled Newcastlemax bulk carriers in September 2020.
According to EPS, when these 209,000 DWT vessels are delivered in 2022, they
will be the cleanest and most efficient in the entire dry bulk shipping fleet
and will be IMO 2030 compliant, eight years ahead of schedule.