BHP Awards LNG supply Agreement to Shell

BHP has awarded its first LNG supply agreement for five LNG-fuelled Newcastlemax bulk carriers.  The carriers will transport iron ore between Western Australia and China from 2022. The contract for fueling the vessels was awarded to Shell. BHP will charter the vessels from Eastern Pacific Shipping for five-year terms.

BHP Chief Commercial Officer, Vandita Pant, said: “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.”

The LNG bunkering will take place through a LNG bunker vessel in Singapore, “FueLNG Bellina”. The vessel is operated by FueLNG, a joint venture between Shell Eastern Petroleum and Keppel Offshore & Marine.

Vandita Pant  added, “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. This contract is expected to form up to 10 per cent of forecasted Asian LNG bunker demand in FY2023,”