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

Atlantic LNG freight rates hit new record

Spot charter rates for the global LNG carrier fleet in the Atlantic basin have reached a new record high,...

Excelerate to splash about $332 million on FSRU order in South Korea

Excelerate Energy will pay about $332 million for a floating storage and regasification unit (FSRU) it ordered at South...

Excelerate orders FSRU at Hyundai Heavy

US floating LNG player Excelerate Energy has ordered a floating storage and regasification unit (FSRU) at South Korea’s Hyundai...

More News Like This

European LNG fueling network continues to expand

European network of liquefied natural gas (LNG) fueling stations continues to grow despite very high prices and is nearing...

Japan’s Inpex inks Abadi LNG deal with Indonesia’s PLN

Japan’s Inpex said it had signed a new memorandum of understanding with Indonesia’s state power company PLN regarding the...

Tellurian says Shell, Vitol LNG supply deals terminated

US LNG firm Tellurian, the developer of the Driftwood LNG export project in Louisiana, said on Friday that its...

LNG Canada pipeline almost 75 percent complete

TC Energy’s Coastal GasLink project, which will supply natural gas to the Shell-led LNG Canada export terminal, continues to...