PPA issues first LNG bunkering licences

Thursday, 18 June 2020
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The Pilbara Ports Authority (PPA) in Western Australia has signed the country’s first ship-to-ship LNG bunkering services licenses with engineering firm Woodside Energy. 

The PPA executed non-exclusive licences with Woodside Energy for the provision of ship-to-ship (STS) LNG bunkering services at the ports of Dampier and Port Hedland.

“In addition to Woodside’s ship-to-ship licences, a truck-to-ship LNG bunkering licence was issued to Evol LNG in early 2017. Western Australia is well-placed to become an LNG bunkering hub, with LNG production facilities close to large iron ore mining operations and the many hundreds of ocean-going vessels that use ports in the Pilbara region,’ Lyle Banks, General Manager Development & Trade at PPA, said.

Key step

Reinhardt Matisons, Woodside Executive Vice President Marketing for Trading and Shipping, called the move “a key step in developing an LNG fuels industry” in Western Australia.

“Woodside is finalising plans for an LNG bunkering operation in the Pilbara to capture the significant environmental and economic benefits of using LNG, instead of fuel oil, for the busy iron ore shipping trade,” Matisons commented.

Formed in 2014, the PPA operates as a Western Australian Government Trading Enterprise, and manages the former port authorities of Dampier and Port Hedland.

LNG MFI support

The LNG Marine Fuel Institute praised the award of the licences, citing the “strong business case” for LNg in the region and stating that it sent “a clear signal” that Australia was acting to meet greenhouse gas emission targets set by the International Maritime Organisation.

“We’ve strongly advocated with our members, including the Pilbara Port Authority, for these changes which we believe are good for the state and the country… alternative fuels need to play a significant role in the shipping industry achieving the IMO 2050 50 per cent net emission target. LNG will be a large part of the marine fuel mix beyond 2050,” Margot Matthews, CEO of LNG MFI, said. 

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