BHP to Order LNG-Fueled Bulker

Maritime Activity Reports, Inc.

July 15, 2019

Image: BHP

Image: BHP

International mining company BHP BHP floated a bulk carrier tender for LNG-fueled transport for up to 27 million tonnes of its iron ore.

The Melbourne-based resource company said in a release that this is the world’s first bulk carrier tender for LNG-fueled  iron ore vessel.

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.

Rashpal Bhatti, Vice President, Maritime and Supply Chain Excellence said emissions resulting from the transportation and distribution of BHP’s products represent a material source of its value chain emissions (Scope 3).

“We recognize we have a stewardship role, working with our customers, suppliers and others to influence emissions reductions across the full life cycle of our products,” Mr Bhatti said.

“Through this tender, we are seeking potential partners who share our ambition of lowering emissions to the maritime supply chain.”  

The tender is open to a select group of industry leaders, from ship owners, banks and LNG fuel network providers. As well as LNG-fueled transport for up to ten per cent of its iron ore, the tender seeks other innovative solutions that can lower greenhouse gas emissions and increase productivity from BHP’s freight requirements.

“We are fully supportive of the International Maritime Organisation’s (IMO) decision to impose lower limits on sulfur levels in marine fuels,” Mr Bhatti said.

“While LNG may not be the sustainable homogeneous fuel of choice for a zero carbon future, we are not prepared to wait for a 100% compliant solution if we know that, together with our partners, we can make significant progress now.”  

“This new tender adds to the work BHP is doing with customers, suppliers and parties along our value chain to influence emissions reductions from the transport and use of our products,” Mr Bhatti said.

As well as investments in emerging technologies, BHP sets greenhouse gas emissions reduction targets for its operations, builds the resilience of its operations and communities to the physical impacts of climate change, and works across sectors to strengthen the global policy and market response.

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