The ships will be used to transport iron ore from Australia to China. File Image / Pixabay
Mining giant BHP has selected Shell to supply LNG to its new gas-powered dry bulk carriers, the company said Tuesday.
The contract was awarded to Shell after a tender process looking at technical capability, available infrastructure and cost competitiveness, BHP said in a statement on its website.
The company is set to charter five LNG-fuelled Newcastlemax bulk carriers from Eastern Pacific Shipping for five-year terms, with the first of the ships expected to be in operation from 2022 carrying iron ore from Australia to China.
"I would like to congratulate BHP on reducing emissions in their maritime supply chain with the world's first LNG-fuelled Newcastlemax bulk carriers," Steve Hill, executive vice president of Shell Energy, said in the statement.
"This LNG bunkering contract strengthens the bunkering market in the region and we look forward to working with BHP and other customers in the maritime sector on their journey to a net-zero emissions future."
The ships will be bunkered in Singapore using FueLNG's bunker barge the FueLNG Bellina, jointly operated by Shell Eastern Petroleum and Keppel Offshore & Marine.
The contract is expected to account for up to 10% of total Asian LNG bunker demand in 2023, BHP said.