BHP Mulls LNG-Fueled Bulker Freight

Melbourne-headquartered resource company BHP wants to introduce LNG-fuelled iron ore vessels, which could transport up to 10 per cent of its product in the coming years.

"In July this year, we released the world’s first bulk carrier tender for LNG-fuelled transport for up to 27 million tonnes of iron ore," said Sundeep Singh, Group Procurement Officer.

He said that introducing LNG-fuelled ships into BHP’s maritime supply chain will eliminate NOx (nitrogen oxide) and SOx (sulfur oxide) emissions and significantly reduce CO2 emissions along the busiest bulk transport route globally.

BHP says it has a responsibility to address emissions, as the biggest producer of coking coal and a major shipper of iron ore.  The mining giant is considering LNG as a way to eliminate nitrogen oxide and sulfur oxide emissions by launching the world’s first tender for the ships.

Meanwhile, Reuters quoted Rashpal Bhatti, BHP’s vice president for maritime and supply chain excellence saying that he could not be specific on the budget, but believed an LNG-fueled vessel could be economic, with costs “on a par with or better than a conventional-fuel vessel”.

LNG-fueled tankers could be carrying iron ore by late 2021, Bhatti said, and in time, the tanks under consideration might also be suitable for hydrogen, which is getting attention as a possible low-carbon fuel.