Shell wins BHP iron ore vessels LNG supply agreement
(Posted on 06/12/20)
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, said: “The LNG bunkering contract marks a significant step in how BHP is working with our suppliers to reduce emissions across the maritime supply chain.”
“LNG fuelled vessels are forecast to help BHP reduce CO2-e emissions by 30 per cent 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 per cent emissions intensity reduction of BHP-chartered shipping of our products.”
Steve Hill, Executive Vice President, Shell Energy, said: “I would like to congratulate BHP on reducing emissions in their maritime supply chain with the world’s first LNG-fuelled Newcastlemax bulk carriers. Decarbonisation of the shipping industry must begin today and 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 – the process of fuelling ships with LNG – 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. The bunker vessel will be able to bunker fuel at a rate of 100-1,000 cubic metres per hour.
“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 per cent of forecasted Asian LNG bunker demand in FY2023,” said Ms Pant.
Latest News
BHP’s operational review
(Posted on 25/01/21)Chief Executive Officer, Mike Henry has released a statement on BHP’s operational review for the... Read more
NMA calls for a peaceful day in Washington
(Posted on 19/01/21)The National Mining Association (NMA) has issued the following statement from Rich Nolan, President... Read more
New chairman for VDKi
(Posted on 19/01/21)The German Coal Importers Association (VDKi has a new chairman. Alexander Bethe, Appointee of the Japanese... Read more
NZAS reaches extension deal with Meridian
(Posted on 14/01/21)Rio Tinto has reached an agreement on a new electricity agreement with Meridian Energy that allows New... Read more
AISI updates six cold-formed steel design standards
(Posted on 10/01/21)The American Iron and Steel Institute (AISI) has updated six cold-formed steel design standards.AISI... Read more
NGFA announces Seyfert as new President and CEO
(Posted on 05/01/21)The National Grain and Feed Association (NGFA) in the USA has announced that Michael J. Seyfert will... Read more
Joint statement from PKKP and Rio Tinto
(Posted on 28/12/20)Rio Tinto and the Puutu Kunti Kurrama and Pinikura people (PKKP) confirm they have taken initial steps... Read more
2021 Coal demand rebound set to be short-lived
(Posted on 22/12/20)A global economic recovery in 2021 is expected to drive a short-lived rebound in coal demand following... Read more
NGFA commends Congress for waterways provisions
(Posted on 22/12/20)The National Grain and Feed Association (NGFA) in the USA has commended Congress for including key inland... Read more
Rio Tinto appoints Stausholm as CEO
(Posted on 17/12/20)Rio Tinto has appointed Jakob Stausholm as chief executive, effective 1 January 2021. Since joining... Read more
