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apple developer:BHP inks LNG deal with Shell to fuel iron ore cargo to China

admin2021-02-20174

LONDON - BHP Group said on Tuesday it awarded Royal Dutch Shell a contract to supply liquefied natural gas (LNG) that will fuel ships loaded with iron ore to China, as part of efforts to cut carbon emissions. The supply agreement will run for five years from 2022 and will power five Newcastlemax bulk carriers from Western Australia to China. Both the mining and shipping industries are under pressure from investors and NGOs to lower carbon output, with ships forced to meet new stringent emission standards introduced earlier this year. BHP Chief Commercial Officer Vandita Pant said the LNG-fuelled vessels are forecast to help the miner cut carbon emissions by 30% on a per voyage basis versus a conventionally fuelled voyage on the same route. It will also contribute to the miner's 2030 goal to support 40% emissions intensity reduction of BHP-chartered shipping of its products, she said. In September, BHP said it awarded a tender to charter the iron ore carriers to Singapore-based Eastern Pacific Shipping. A BHP executive also told Reuters the miner was in talks with three firms to supply LNG for the carriers. BHP's Pant said the contract with Shell was expected to account for up to 10% of forecast Asian LNG bunker demand in FY2023. REUTERS
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