World News
SIBCON: 25 Companies Offered on BHP's LNG-Fuelled Shipping Tender
Mining giant BHP was 'overwhelmed' by the response to its global tender to help it shift its iron ore deliveries to gas-powered ships, a company representative said Thursday, with 25 firms approaching it with different ideas.
The company announced the tender in July 2019. In September of this year, it agreed to charter five LNG-fuelled bulk carriers from Eastern Pacific Shipping, to be delivered throughout 2022 and then take iron ore cargoes from Australia to China.
"We weren't sure whether we were going to get two, three or four organisations coming back and saying, we will offer a turnkey solution, or a time-chartered solution, or just an LNG solution," Rashpal Bhatti, vice president of maritime and supply chain excellence at BHP, said at SIBCON Thursday.
"But 25 companies came back, and not just with one offer each.
"We were overwhelmed, and it took us a while to get through the data."
The company's new ships will save more than 30% in carbon emissions compared with a conventional Newcastlemax dry bulk carrier, at a lower bunker cost, Bhatti said.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 565.50 | 4.50 | 678.50 | 4.50 |
| Rotterdam | 512.00 | 3.50 | 676.00 | 9.00 |
| Houston | 552.00 | 3.00 | 682.00 | 4.00 |
| Fujairah | 555.50 | 7.50 | 753.00 | 1.50 |
| Global 20 Ports Average | 583.50 | 4.00 | 762.50 | 2.50 |
| Global 4 Ports Average | 546.50 | 4.50 | 697.50 | 2.50 |
| Global Average Bunker Price | 632.50 | 2.00 | 811.00 | 1.50 |
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