BHP in talks with 3 firms for LNG bunker supply contract

22 September, 2020 12:00 AM printer

SINGAPORE: BHP Group is in talks with three companies for the supply of liquefied natural gas (LNG) to fuel five ships it plans to use to transport iron ore between western Australia and China, a senior company executive told Reuters.

A contract is expected to be awarded next month after an initial eight to 10 firms vied for delivery of the super-chilled fuel to the miner over 2022 to 2027, Rashpal Bhatti, BHP’s vice-president for maritime and supply chain excellence told Reuters.

BHP earlier this month awarded a tender to charter five LNG-fuelled Newcastlemax bulk carriers to Singapore-based Eastern Pacific Shipping, aiming to cut greenhouse gas emissions on voyages to biggest customer China by more than 30 per cent, report agencies.

The five vessels will be able to carry about 10 million tonnes per year (tpy) of iron ore, or about about 3.6 per cent of BHP’s 280 million tpy in exports.

BHP will assess the vessels once they are on the water before deciding whether to expand its LNG-fuelled fleet, Mr Bhatti said.


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