Pilbara miner BHP has opened a tender for five iron ore carriers powered by LNG, which will transport 10 million tons of iron ore to China annually from 2022. The LNG-powered Newcastlemax bulk carriers, with a deadweight tonnage of 209, were expected to decrease greenhouse gas emissions by about 30% compared to their diesel-powered counterparts, making them a first-of-its-kind in the world.
The tender was awarded to Singapore-based Eastern Pacific Shipping, with the gas supply contract expected to be signed in October. BHP commercial director Vandita Pant said, "As one of the world's largest dry bulk charterers, BHP acknowledges its role in enabling actionable reductions in GHG emissions throughout the maritime supply chain with our suppliers and customers. The tender marks a progressive shift for BHP and the wider mining and shipping industry, taking an important step in reducing GHG emissions in the 1.5 billion tonne iron ore seaborne market."
The International Maritime Organization is reducing emissions from the global shipping sector. New regulations came into effect in January this year that greatly reduce the use of sulfur in fuels used on ships to decrease harmful sulfur oxide emissions into the air.
Pant said the LNG vessels would virtually eliminate sulfur oxides and significantly reduce other emissions such as CO2 and nitrogen oxides. The introduction of LNG-fueled vessels is expected to result in more than 30% lower CO2-e emissions per journey compared to conventional fuel on the route from Western Australia to China.
EPS CEO Cyril Ducau said the shipbuilder was excited to work with BHP. Ducau concluded, "BHP's commitment to making a positive change for the industry resonates with our decarbonization mission and environmental preservation culture. These ships will be the cleanest and most efficient in the entire dry bulk shipping fleet when they are delivered in 2022 and will be IMO 2030 compliant."
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