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

Energy Transfer seals Lake Charles LNG supply deals

Texas-based Energy Transfer has signed new supply deals for its planned Lake Charles LNG export facility in Louisiana as it works to take a final investment decision by the end of this year, according to its management.

Germany, Egypt seal FSRU charter deal

Germany's Ministry for Economic Affairs and Energy has signed a deal with Egypt's state-owned EGAS to charter the 174,000-cbm FSRU Energos Power.

Atlantic LNG shipping rates slightly down, European prices climb

Atlantic LNG freight shipping rates rose above $40,000 per day this week, while European prices decreased compared to last week.

More News Like This

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.

Eastern Pacific Shipping in 350th LNG bunkering op

Singapore’s Eastern Pacific Shipping has completed its 350th ship-to-ship LNG bunkering operation as the company’s fleet of LNG-powered vessels continues to expand.

EPS adds new LNG-powered PCTC to its fleet

Singapore’s Eastern Pacific Shipping took delivery of another LNG-fueled pure car and truck carrier in China.

EPS, DongHwa Entec in LNG fuel move

Singapore-based Eastern Pacific Shipping and South Korean equipment supplier DongHwa Entec have joined forces on the development of a high-pressure compressor for LNG-powered vessels.