BHP has awarded its first LNG supply agreement for five LNG-fuelled Newcastlemax bulk carriers, which will transport iron ore between Western Australia and China from 2022.
Shell has been awarded the contract to fuel the vessels, which BHP will charter from Eastern Pacific Shipping (EPS) for five year terms.
BHP Chief Commercial Officer, Vandita Pant, said: "The LNG bunkering contract marks a significant step in how BHP is working with our suppliers to reduce emissions across the maritime supply chain."
The LNG bunkering contract will enable BHP to manage fuel supply risk, build LNG operational capability internally, and also help to strengthen the emerging LNG bunkering market in the region. This contract is expected to form up to 10% of forecasted Asian LNG bunker demand in FY2023, explained Ms Pant.
BHP is a world-leading resources company, with headquarters in Melbourne, Australia with more than 80,000 employees and contractors, primarily in Australia and the Americas.