Idan Ofer’s Singapore-headquartered Eastern Pacific Shipping (EPS) has been chosen to fulfil mining giant BHP’s requirement for LNG dual-fuel bulk carriers.
EPS has sealed an agreement with BHP to charter five dual-fuel newcastlemaxes to the Australian miner for a period of five years. The vessels are scheduled to deliver during 2022, and will be used to carry iron ore between Western Australia and China.
BHP had originally put out a tender in 2019 for 11 dual-fuel newcastlemaxes as part of its Green Corridor project, although in June it scaled back its ambitions to five vessels.
Cyril Ducau, CEO of EPS, commented: “We are thrilled to partner with BHP, one of the world’s largest dry bulk charterers on this landmark deal. When discussions began, it became evident that our values and sustainability agendas were aligned. BHP’s commitment to making a positive change for the industry resonated with our decarbonisation mission and our culture of environmental protection. This deal also sends a clear signal to the industry that progressive companies, like BHP, have viable options to lower their carbon footprint today. When these vessels deliver in 2022, they will be the cleanest and the most efficient in the entire dry bulk shipping fleet and will be IMO 2030 compliant eight years ahead of schedule.”
The 209,000 dwt vessels will be fitted with high-pressure MEGI engines to reduce methane slippage.
What “decarbonisation” is achieved by burning methane? Far from “decarbonising”, burning methane in a diesel increases the rate of global warming because of the amount of unburned fuel passing through the engine. Methane is a far more powerful greenhouse gas than carbon dioxide. It is time people in the shipping industry stopped spouting this twaddle.