BHP Group welcomes world’s first LNG-fuelled iron ore carrier

BHP Group has welcomed the world’s first LNG-fuelled Newcastlemax bulk carrier, which will transport iron ore between Western Australia and Asia from this year.

BHP has chartered five LNG-fuelled Newcastlemax bulk carriers from Eastern Pacific Shipping (EPS) for five years and awarded the LNG contract to Shell. In the future, the vessels could also use bio-LNG.

On her maiden voyage, the vessel arrived at Singapore’s Jurong Port for her first LNG bunkering operation, which will take place through the first LNG bunker vessel Singapore, the FuelLNG Bellina. FuelLNG, a joint venture between Shell Eastern Petroleum and Keppel Offshore & Marine, operates the bunker vessel.

BHP’s head of maritime supply chain, Rashpal Bhatti, said the engine and tank set-up on the Newcastlemax bulk carriers will allow the company to move from LNG to more energy-dense and bio-LNG fuels in the future, Reuters reported.

Vandita Pant, BHP’s chief commercial officer, commented: “BHP works with our suppliers to embed innovative and sustainable solutions in our supply chain. This vessel delivers significant improvements to energy efficiency and emissions intensity, as well as reduced overall greenhouse gas emissions in our value chain.

“These achievements demonstrate BHP, EPS and Shell’s shared commitment to social value through innovative emissions reduction initiatives.”

These LNG-fuelled vessels are expected to reduce GHG emissions intensity by more than 30% on a per-voyage basis compared to conventional fuel.

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