Eastern Pacific Shipping charters LNG-powered bulker quintet to BHP

Singapore’s Eastern Pacific Shipping has signed a deal to charter five LNG-powered Newcastlemax bulk carriers to Australian miner BHP.

The five-year deal follows a tender by the mining giant seeking vessels with the ability of reducing greenhouse gas emissions by more than 30 percent per voyage.

Both companies credit a shared commitment to industry-wide decarbonisation as a driving force behind the contract.

The five dual-fuel bulk carriers will carry iron ore between Western Australia and China from 2022.

The two companies did not reveal any additional info regarding the charter contract.

World’s first dry bulk LNG-powered charter

BHP claims this is the world’s first LNG-fueled Newcastlemax bulk carrier tender and charter.

Additionally, the 209,000-dwt vessels will feature high-pressure ME-GI engines reducing methane slippage to “negligible levels”.

Furthermore, the frim said in a statement on Friday it expects to award the LNG bunkering supply contract in October this year.

“As one of the largest dry bulk charterers in the world BHP recognises the role we play in working with our suppliers and customers to drive actionable reductions in GHG emissions across the maritime supply chain,” BHP chief commercial officer, Vandita Pan said.

She said 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 tonne iron ore seaborne market.

“The LNG bunkering time charter contract, with a total cost of ownership less than a conventionally-fueled 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,” Pan said.

EPS CEO Cyril Ducau said, “When these vessels deliver 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.”

Most Popular

Excelerate buys GasLog LNG carrier

US FSRU player Excelerate Energy has purchased a 2007-built steam liquefied natural gas (LNG) carrier from GasLog Partners, a part of Greek LNG shipping firm GasLog, according to brokers.

NextDecade, Bechtel agree $9 billion EPC deals for two Rio Grande LNG trains

US LNG firm NextDecade and compatriot Bechtel have finalized EPC contracts worth $9.09 billion for the construction of the fourth and fifth trains and related infrastructure at the Rio Grande LNG facility in Texas.

Venture Global gets FERC OK to boost Calcasieu Pass LNG capacity

US LNG exporter Venture Global LNG has received approval from the US FERC to increase the peak liquefaction capacity of its Calcasieu Pass LNG terminal in Louisiana.

More News Like This

EPS in 400th LNG bunkering operation

Singapore’s Eastern Pacific Shipping has completed its 400th ship-to-ship LNG bunkering operation, as the company’s fleet of LNG-fueled ships continues to expand.

EPS boosts stake in CoolCo

CoolCo's largest shareholder, Eastern Pacific Shipping, has further increased its shareholding in the LNG carrier operator.

CoolCo secures new LNG carrier charter deals

LNG carrier operator Cool Company (CoolCo) has secured new charter deals for two of its vessels during the first quarter. CoolCo also said it found employment in the spot market for its newbuild vessel Kool Tiger, while it still looks to employ the vessel on a long-term charter.

EPS LNG-powered tankers to feature HD KSOE’s pumps

Singapore-based Eastern Pacific Shipping (EPS) has joined forces with South Korea’s HD Korea Shipbuilding & Offshore Engineering (HD KSOE) to install the latter’s pumps and vaporizer skids on LNG-powered Aframax tankers.