BHP shifts to LNG in iron ore shipping

Friday, 04 September 2020 17:49:15 (GMT+3)   |   Istanbul

Australian miner BHP Billiton has announced that it has awarded Singapore-based Eastern Pacific Shipping (EPS) the world’s first LNG-fuelled Newcastlemax bulk carrier tender, with the aim of reducing greenhouse gas (GHG) emissions by more than 30 percent per voyage. The LNG-fuelled bulk carrier tender was released in July 2019.

The companies have signed a five-year time charter contract for five LNG-fuelled Newcastlemax bulk carriers to carry iron ore between Western Australia and China from 2022. The LNG bunkering supply contract is expected to be awarded in October 2020.

The LNG-fuelled vessels would virtually eliminate sulphur oxide emissions and significantly reduce carbon and nitrogen oxide emissions, as SteelOrbis understands.

The company stated that the tender marks a progressive shift for BHP and the broader mining and shipping industry and is a significant step toward lowering GHG emissions in the 1.5 billion mt of iron ore seaborne market.

“The LNG bunkering time charter contract, with a total cost of ownership less than a conventionally fuelled Newcastlemax, will enable BHP to manage the fuel supply risk, build LNG operations capability internally and capture OpEx benefits through optimization of voyage operations and fuel utilization,” said Vandita Pant, BHP chief commercial officer.

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