Miner BHP has awarded its first LNG supply agreement for five LNG-fuelled newcastlemax bulk carriers, which will transport iron ore between Western Australia and China from 2022.
Shell has been awarded the contract to fuel the vessels, which BHP will charter from Eastern Pacific Shipping (EPS) for five-year terms.
BHP chief commercial officer, Vandita Pant, commented: “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.”
Steve Hill, executive vice president, Shell Energy, said: “Decarbonisation of the shipping industry must begin today and LNG is the cleanest fuel currently available in meaningful volumes.”
LNG bunkering will take place through the first LNG bunker vessel in Singapore, FueLNG Bellina. The vessel is operated by FueLNG, a joint venture between Shell Eastern Petroleum and Keppel Offshore & Marine.