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BHP signs LNG supply deal for newcastlemax bulkers with Shell

BHP signs LNG supply deal for newcastlemax bulkers with Shell

The first LNG supply contract for its Newcastlemax bulkers with Shell was signed by Australian resource company BHP.

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From 2022 onwards, five vessels will transport iron ore between Western Australia and China.

The contract to fuel the vessels was awarded to Shell, which BHP will charter for five years from Eastern Pacific Shipping (EPS).

“LNG fuelled vessels are forecast to help BHP reduce CO2-e emissions by 30 per cent on a per voyage basis compared to a conventional fuelled voyage between Western Australia and China, and contribute to our 2030 goal to support 40 per cent emissions intensity reduction of BHP-chartered shipping of our products," BHP Chief Commercial Officer, Vandita Pant stated.

The agreement is the result of a tender process involving potential suppliers across various geographies.

The first LNG bunker ship in Singapore, FueLNG Bellina, will carry out LNG bunkering, the method of fueling ships with LNG. The vessel is owned by FueLNG, a joint venture between Keppel Offshore & Marine and Shell Eastern Petroleum. The bunker vessel will be capable of bunkering 100-1,000 cubic meters per hour of fuel.

Maritime Business World 

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