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BHP charters LNG-fuelled newcastlesmaxes from Eastern Pacific Shipping

Photo: BHP Iron ore pile and conveyor belt in Western AustraliaIron
Mining giant BHP has inked the world’s first charter contract for LNG-dual fuelled bulk carriers with Eastern Pacific Shipping (EPS).

BHP is chartering five 209,000 dwt newcastlemax newbuildings powered by LNG for a period of five years from EPS. The vessels are scheduled to be delivered during 2022 and carry iron ore from Western Australia to China.

EPS ceo Cyril Ducau, “When discussions began, it became evident that our values and sustainability agendas were aligned. BHP’s commitment to making a positive change for the industry resonated with our decarbonisation mission and our culture of environmental protection. This deal also sends a clear signal to the industry that progressive companies, like BHP, have viable options to lower their carbon footprint today.”

According to EPS the fleet of five vessels will be IMO 2030 compliant in terms of GHG emissions eight years ahead of schedule.

BHP coo, Vandita Pant said, "The tender marks a progressive shift for BHP and the broader mining and shipping industry and is a significant step toward lowering GHG emissions in the 1.5 billion tonne iron ore seaborne market."

"We expect the introduction of LNG-fuelled vessels will result in more than 30% lower CO2-e emissions on a per voyage basis compared to conventional fuel along the Western Australia to China route."

BHP said the LNG bunkering contract is expected to awarded in October this year.