Shell to bunker BHP’s LNG-powered bulker quintet

Australian miner BHP has awarded a contract to energy giant Shell to supply LNG fuel to five 209,000-dwt Newcastlemax bulk carriers.

The contract follows a tender process that included potential suppliers across several geographies, the Australian firm said.

To remind, BHP has previously signed a deal with Singapore’s Eastern Pacific Shipping to charter the vessels for a period of five years.

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

Furthermore, Shell will fuel the ships with Singapore’s first LNG bunkering vessel FueLNG Bellina.

FueLNG, a joint venture between Shell Eastern Petroleum and Keppel Offshore & Marine, operates the vessel.

Asian LNG bunkering boost

BHP Chief Commercial Officer, Vandita Pant, said LNG-powered vessels would help BHP reduce CO2-e emissions by 30 percent on a per voyage basis compared to a conventional-fueled voyage.

“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,” Pant said.

She added that this contract would form up to 10 percent of forecasted Asian LNG bunkering demand in the fiscal year 2023.

Steve Hill, executive VP, Shell Energy said “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,” Hill said.

- Advertisements -

Most Popular

Tellurian: early works progress at Driftwood LNG site

US LNG firm Tellurian and compatriot engineer Bechtel are moving forward with early site works for the Driftwood LNG...

Hoegh LNG says Australian FSRU contract confirmed

Floating LNG player Hoegh LNG said on Friday that Australian Industrial Energy (AIE) has confirmed a long-term FSRU charter...

Cheniere takes FID on Corpus Christi LNG expansion project

US LNG exporting giant Cheniere said on Wednesday it has taken a financial investment decision on Stage 3 expansion...

More News Like This

Brunei Gas Carriers sells old LNG tanker

Brunei Gas Carriers said it has sold its longest-serving A-Class liquefied natural gas (LNG) carrier, Abadi. "On June 20, 2022,...

Singapore’s FueLNG in LNG trucking milestone

FueLNG, a joint venture consisting of Keppel Offshore & Marine and Shell, said it has completed 1000 LNG trucking...

Knutsen takes delivery of Shell-chartered LNG carrier in South Korea

Norwegian shipowner Knutsen has taken delivery of a Shell-chartered LNG carrier from South Korea’s Hyundai Samho Heavy Industries. Hyundai Samho...

Tanzania inks initial deal with Shell and Equinor on $30 billion LNG export project

Equinor and Shell have signed a framework deal with Tanzania to develop the planned $30 billion LNG export project...